Last month, the default option market saw some retirement pension providers stand out with both short- and long-term performance despite overall poor returns.
According to return data compiled by fund rating agency FnGuide on the 15th, Samsung Life Insurance recorded consistent performance across all risk levels, from ultra-low risk to high risk, ranking among the top performers.
Shinhan Investment Corp. and Korea Investment & Securities also minimized short-term losses or showed strong long-term performance in the high-risk and medium-risk segments. While most products posted negative returns, some insurance company products maintained top rankings, demonstrating stability, and some securities firms showed defensive trends in the medium- and high-risk groups.
The top five products in the high-risk group all recorded negative returns over the month of March. However, some products still maintained double-digit cumulative returns over one year, highlighting their presence in long-term performance.
Shinhan Investment Corp.'s Default Option High-Risk Portfolio 2 posted a return of -0.05%, the smallest short-term loss, securing first place. Samsung Life Insurance continued its overall strong trend by ranking high in both one-month and one-year returns. Korea Investment & Securities showed a defensive trend with a one-month return of -0.98%, while its one-year return of 22.72% ranked first, demonstrating outstanding long-term performance.
In the medium-risk group, even the top-ranking products mostly recorded negative returns over March, showing somewhat weak short-term performance. Shinhan Investment Corp.'s Default Option Medium-Risk Portfolio 2 had the smallest loss at -0.02%, showing a relatively defensive trend, followed by Gwangju Bank (-0.09%) and Hana Securities (-0.28%).
On the other hand, clear performance differences appeared based on one-year returns. Korea Investment & Securities' Medium-Risk Portfolio 2 recorded 15.83%, ranking first in the segment, while Samsung Life Insurance and Hanwha Life Insurance, holding the same product, tied for second place with 10.61%. Samsung Life Insurance's other products and Hana Securities also showed returns around 10%, forming the top tier in long-term performance. However, they could not avoid a decline compared to the previous month, along with short-term returns.
In the low-risk group, products from Samsung Life Insurance, Hanwha Life Insurance, and the Korea Workers' Compensation & Welfare Service tied for first place with a one-month return of 0.36%, showing strength in short-term performance. These products all fell by 0.23 percentage points compared to the previous month but maintained relatively stable trends without falling into negative territory. All other products recorded negative returns.
Hanwha Investment & Securities and Mirae Asset Securities showed the largest declines with returns of -1.89% and -1.44%, respectively. Based on one-year returns, Korea Investment & Securities' Default Option Low-Risk Portfolio 2 posted the highest annual return in the low-risk group at 9.83%, followed by Samsung Securities (9.12%) and Samsung Life Insurance (7.31%). Samsung Life Insurance ranked high in both one-month and one-year returns.
The ultra-low-risk group maintained a stable trend similar to the previous month in both short- and long-term periods. Based on one-month returns, Samsung Life Insurance's Default Option Ultra-Low-Risk Principal Guaranteed Product ranked first with 0.27%, followed by Heungkuk Life Insurance (0.26%) and IBK Pension Insurance (0.25%). In one-year returns, Tongyang Life Insurance (3.91%), Mirae Asset Life Insurance (3.80%), and IBK Pension Insurance (3.75%) ranked high, with Samsung Life Insurance and Kyobo Life Insurance also showing steady long-term performance at 3.60% each.
Overall, the default option market in March saw widespread declines in returns, but some providers demonstrated presence in both short- and long-term returns. Securities firms that achieved defensive results in the high-risk and medium-risk groups, which experienced notable short-term losses, attracted attention. In the ultra-low-risk·and low-risk groups, insurance companies continued their steady strength.
FnGuide evaluated, "In a situation where performance differences between products are widening, it has become important to make active investment decisions that assess not only the default option as a simple 'default value' but also the effectiveness of asset composition and management strategies."
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