Im Dong-sun, CEO of NH-Amundi, "Hanaro TDF Settles in the Retirement Pension Market" (Comprehensive)

NH Amundi Asset Management Holds First Press Briefing for Hanaro TDF
"Year-End AUM Target of 300 Billion KRW"

"Supported by excellent returns, the total net assets of the Hanaro TDF series have more than doubled this year alone. In particular, the number of customers choosing Hanaro TDF has been rapidly increasing since the introduction of the default option."

Lim Dongsun, CEO of NH-Amundi Asset Management, delivering a greeting at the 'Hanaro TDF' press conference held on the 4th in Mapo, Seoul. Photo by Yoo Hyunseok

Lim Dong-sun, CEO of NH-Amundi Asset Management, stated at a press briefing on the 4th, "Hanaro TDF is standing out in the growing retirement pension market," adding, "It is showing excellent returns through successful asset allocation and risk management."

Hanaro TDF is a product managed with advisory support from Allspring Asset Management (formerly Wells Fargo Asset Management), which launched the world's first Target Date Fund (TDF). To develop a product tailored to the Korean life cycle, joint research was conducted with Allspring, and an asset allocation model was independently developed.

The returns by vintage are 57.30% for 'Hanaro TDF 2045,' 54.51% for 'Hanaro TDF 2040,' and 47.68% for 'Hanaro TDF 2035.' Net assets are also growing rapidly. As of the 31st of last month, the total net assets of the Hanaro TDF series amounted to 304.5 billion KRW, more than doubling compared to the beginning of this year.

CEO Lim explained, "The retirement pension market exceeded 382 trillion KRW at the end of 2023. It is growing more than 10% annually, with a 14% growth last year in particular," adding, "Asset management companies are paying more attention to managing retirement pensions and creating various products." He further stated, "The key will be how well assets coming in through TDFs or default options are managed going forward."

At the briefing, Addie Chang, Head of Global Portfolio Management at Allspring, said, "Allspring Asset Management and NH-Amundi Asset Management have a strong partnership," and explained, "We will actively provide advisory support to apply the 30 years of accumulated TDF know-how to the management of Hanaro TDF."

Kim Seok-hwan, Head of Global Solutions at NH-Amundi Asset Management, explaining the performance of Hanaro TDF at the Hanaro TDF press conference held on the 4th in Mapo, Seoul. Photo by Yoo Hyun-seok

Kim Seok-hwan, Deputy General Manager of the Global Solutions Division at NH-Amundi Asset Management, who is responsible for managing Hanaro TDF, emphasized, "Hanaro TDF pursues excess returns compared to the market through collaboration with Allspring," adding, "We plan to jointly implement strategies to effectively respond to unexpected situations for crisis management."

NH-Amundi actively implements dynamic risk management (DRH), currency hedging, and factor-based investing for risk management. DRH is a portfolio risk management method independently developed by Allspring for managing TDF risks. In the event of a sharp market decline, it can reduce losses through risk hedging using exchange-traded futures.

NH-Amundi set a custody asset target of 300 billion KRW for this year. Jo Kyung-hee, team leader at NH-Amundi, said, "At the beginning of the year, we set the custody asset target at 200 billion KRW, but we already surpassed it in the first quarter," adding, "We expect 300 billion KRW to be achievable by the end of the year."

She continued, "In the past, we had to ask distributors to come to us, but recently, they have been contacting us first, showing increased interest," and explained, "We expect to achieve our target."

CEO Lim said, "We will properly manage assets in the asset management market, build trust, and lead the investment culture," adding, "We will consistently remain a company that delivers good results in the pension market for our customers' retirement."