Samsung Asset Management, Samsung Korea-style TDF2050 Tops 3-Year Long-Term Returns

Samsung Asset Management announced on the 6th that its flagship lifecycle fund, ‘Samsung Korea-style TDF 2050 (UH),’ achieved a 3-year return of 42.6%, ranking first among all domestic TDF 2050 vintages (including ETFs). This performance significantly outpaced the average return of 22.9% for all TDF 2050 vintages.

TDF (Target Date Fund) is a lifecycle fund that adjusts the investment allocation according to the worker’s retirement timeline. Funds designed for workers targeting retirement in 2050 are labeled with the number ‘2050.’ Because the fund automatically adjusts the proportion of stocks and bonds according to the timeline, it is popular among customers who want to prepare for retirement easily and conveniently. Since the introduction of the default option, interest in TDFs has grown, with the domestic TDF net asset size increasing from 16.5 trillion KRW at the end of last year to 17.8 trillion KRW at the end of last month.

The Samsung Korea-style TDF series is the first TDF fund in Korea and offers differentiated management strategies based on the longest TDF management experience in the industry. Samsung Asset Management maintains a consistent investment philosophy and standards through its Global Portfolio Investment Committee. By diversifying investments in excellent global funds and actively responding to the market through active management, it supports customers in preparing for retirement stably.

As the TDF market expands, more investors are comparing and subscribing to funds based on short-term returns. However, since pension investments aim to secure stable funds after retirement, long-term performance is more important. Because the investment amount increases as the retirement date approaches, long-term stability and continuous management strategies are essential rather than short-term performance. When selecting a TDF, it is important to prioritize long-term performance and check whether the fund can be managed stably even after retirement.

With the recent sustained strength of the dollar, interest in retirement preparation using dollar assets is also growing. Currency-exposed (UH) TDF products are rapidly expanding. However, simply comparing currency-hedged (H) and currency-exposed (UH) funds based on short-term returns is not appropriate. Since exchange rate volatility greatly affects returns, investors need to recognize that funds with the same currency strategy should be compared.

Jae-kwang Shin, Executive Director of Multi-Asset Management at Samsung Asset Management, said, "Samsung Korea-style TDF operates both currency-hedged and currency-exposed options to meet the diverse needs of customers," adding, "We plan to strengthen company-wide efforts to support customers’ financial stability after retirement through the representative Korea-style TDF series."

Samsung Asset Management offers ▲ Samsung Korea-style TDF, suitable for customers seeking long-term performance improvement through active investment ▲ Samsung ETF-included TDF, for customers who want the compound effect of returns with low costs and quick market response ▲ KODEX TDF ETF, which allows customers who want to respond directly to market changes and invest quickly to trade easily.