Samsung Asset Management, Samsung Korea-style TDF 2050... "5-year return 63%, ranked 1st among all TDFs"

Samsung Asset Management announced on the 3rd that the 5-year return of the fund stands at 63%, ranking first among all TDFs (Target Date Funds).

TDFs are known as representative pension investment products. They automatically adjust the ratio of growth assets and stable assets according to the retirement timeline.

Samsung Korean-style TDF2050(UH) diversifies investments across more than 1,800 global stocks and bonds in over 90 countries worldwide, offering high stability and profitability as a pension investment tool. Being currency-exposed, it also benefits from investing in the US dollar.

Unlike typical TDFs that adjust only asset proportions according to life cycle changes, this fund applies style allocation by life cycle as a differentiating feature. Specifically, the younger the investor, the higher the proportion of growth stocks within equities and high-yield bonds such as corporate bonds within fixed income. As retirement approaches, the investment ratio shifts towards stable dividend growth stocks and government bonds.

Compared to other TDFs, even with the same equity asset ratio, young investors pursue a relatively "High Risk, High Return" strategy to actively grow assets. As investors enter middle age, the asset allocation adjusts to pursue "Low Risk, Low Return," aiming to protect retirement assets stably. This is a distinctive feature of the fund.

Samsung Asset Management operates the Global Portfolio Investment Committee, which decides and manages key matters related to the TDF strategy, maintaining consistent company-wide TDF management philosophy and standards. Through systematic management, it has demonstrated excellent long-term performance.

Samsung Korean-style TDF2050(UH), with its unique management style combined with currency exposure, achieves synergy effects, recording top-level performance not only in long-term returns but also in mid- to short-term returns. The KRW-USD exchange rate, which was in the 1,100 won range in 2019, has steadily remained in the 1,300 won range this year, significantly enhancing the dollar investment effect. Accordingly, this product shows 3-year and 1-year returns of 27% and 19.8%, respectively, ranking among the top in the same vintage of all TDFs.

Jae-kwang Shin, Executive Director of the Multi-Asset Management Division at Samsung Asset Management, said, “Samsung Asset Management operates the industry’s largest TDF series tailored to various customer preferences. Through the representative retirement plan product, TDF, we plan to continue company-wide efforts to support customers’ financial stability after retirement.”