Shinhan Asset Management, Shinhan BalancePro Aggressive 6-Month Return 10%

Shinhan Asset Management is also showing prominence in BF (Balance Fund), one of the pillars of the default option. The ‘Shinhan Balance Pro Aggressive’ fund reported a 6-month performance of 10.05%, the only advisory-type BF to achieve double-digit returns, according to a statement on the 28th.

The assets under management (AUM) of funds subscribed to the Retirement Pension Pre-Designated Management System (default option) surpassed 1 trillion KRW just 14 months after its introduction. Among these, excluding TDFs, BFs (Balance Funds) are managed by 9 asset management companies with 26 products, exceeding 200 billion KRW in AUM. In particular, the market interest is growing, with net inflows of over 90 billion KRW into BF types just this year. Among them, the ‘Shinhan Balance Pro Aggressive’ fund, as an advisory-type BF, recorded a 3-month return of 8.6% and a 6-month return of 10.05% as of the 22nd, ranking first with outstanding returns across all periods.

Among the various strategies and management structures used in BF types, advisory-type BFs, which combine the asset management company’s management capabilities with portfolio advisory services from securities firms, are establishing themselves as a new investment type in the default option market. Compared to TDFs (Target Date Funds), which adjust asset allocation based on the investor’s retirement date, BF types allocate assets within a predetermined risk level, making them attractive products in terms of constructing an optimal portfolio that matches the risk tolerance of retirement pension subscribers.

The Shinhan Balance Pro series was launched with two types: Aggressive and Neutral. These funds combine Shinhan Asset Management’s fund management capabilities with Shinhan Investment Corp.’s investment portfolio advisory services. Through Shinhan Investment Corp.’s advisory process, investment opinions on asset classes considering the economy, market, and risks are determined, along with the allocation proportions for short-, medium-, and long-term investments.

Shinhan Asset Management derives the final portfolio within the risk tolerance limits. Using a global asset allocation model, it actively allocates assets based on global bonds, stocks, and alternative investment-related domestic and international exchange-traded funds (ETFs). The core management strategy is to pursue excess returns over the market through systematic responses such as regular and ad-hoc rebalancing when events occur, including changes in market outlook, underperformance of sub-funds, or changes in management strategy.

Ryu Ji-eun, Head of DT/Marketing Planning at Shinhan Asset Management, stated, “The Shinhan Balance Pro series is a retirement pension-exclusive product that seeks stable excess returns over the mid- to long-term through active asset allocation within a predetermined volatility range. It is a product with the most suitable management structure for the characteristics of default options, which require providing products that match investors’ risk tolerance, so attention should be paid to asset allocation-type funds.”