[2024 Capital Investment Target] Shinhan Asset Management, Industry Leader in 'Didim Fund' Capital Inflow

Best Fund Shinhan Asset Management 'Shinhan Didim Global EMP Fund'

Jo Jaemin, CEO of Shinhan Asset Management. Photo by Shinhan Asset Management

Shinhan Asset Management, which received the '2024 Asia Capital Investment Award' Best Fund Award, has led the market for the 'Didim Fund,' a joint brand of the Korea Financial Investment Association and the asset management industry. The Didim Fund was simultaneously launched by 25 asset management companies on September 25, and the 'Shinhan Didim Global EMP' fund recorded the highest capital inflow within the industry. As of the 8th of last month, a total of 4.4 billion KRW had been invested, accounting for more than 40% of the approximately 11 billion KRW increase in individual investors.

This fund is a Balanced Fund (BF) product that pursues stable returns through an asset allocation strategy. It maintains a consistent ratio between risky assets such as stocks and safe assets such as bonds. Designed to achieve higher returns than deposit interest rates with lower volatility than traditional dividend-type funds, it is expected to play a key role in preparing retirement assets for investors.

Both scale and returns have shown stable trends since the initial launch. The existing 'Shinhan TRF Growth Type OCIO Solution' fund, a representative asset allocation strategy fund, has recorded an annual average return of over 10% since its launch in June 2022. The Shinhan Didim Global EMP was remodeled to meet the Didim Fund requirements and launched accordingly. Although there are some changes in asset allocation proportions, it is considered to have completed verification by maintaining stable performance.

The Shinhan Didim Global EMP fund is set with a stock allocation of less than 50%, allowing investment of up to 100% of retirement pension reserves. The fund’s risk rating has also been lowered from level 3 to level 4, enabling conservative investors to invest with confidence. The global EMP fund diversifies investments across stocks, bonds, and alternative assets with different risk levels, investing more than 50% in Exchange-Traded Funds (ETFs) to maximize risk diversification. While constructing a portfolio centered on overseas stocks and domestic bonds, it invests partially in alternative assets to hedge against rising interest rates and inflation risks. Accordingly, the fund has recorded a 3.86% return from its inception date through the 8th of last month.

Kim Chung-sun, Executive Director of Shinhan Asset Management, said, “The Shinhan Didim Global EMP fund aims for a target return of ‘annual inflation rate + 3%’.” He added, “As a leading first-generation operator of Target Date Funds (TDF), we will strive to achieve further growth in the retirement pension market based on our continuous performance in the default option BF sector.”