Samsung Korea TDF Currency Hedged (H) Series Delivers Strong Returns

The global tariff war triggered by U.S. President Donald Trump has led to a decline in the value of the dollar and sharp fluctuations in stock and bond prices. As a result, investor anxiety has increased. In this rapidly changing market environment, pension investors who subscribed to Target Date Funds (TDFs) with currency hedging, which provide well-diversified portfolios tailored to the investor's life cycle, have managed to weather the market shocks and continue their long-term investment strategies.

On April 23, Samsung Asset Management announced that its flagship pension product among mixed-equity TDF funds, the 'Samsung Korea TDF Currency Hedged (H)' vintages?2025 (-1.9%), 2030 (-3.3%), 2035 (-4%), 2040 (-4.3%), 2045 (-4.6%), 2050 (-5%), and 2055 (-5.1%)?ranked first in one-month returns.

This performance is the result of proactively responding to market changes by reducing risky assets in advance and increasing the proportion of currency hedging to manage the risks of global asset price declines and dollar weakness caused by the Trump administration's tariff policies.

TDFs are life-cycle products in which asset allocation strategies are automatically adjusted according to the worker's retirement date, aiming for steady asset growth without being swayed by market timing. Strategic management is crucial to maintaining stable finances after retirement. As geopolitical risks and currency volatility increase, the stability of currency-hedged (H) TDFs, which combine global diversification with currency risk management, is gaining attention. Since the U.S. strengthened protectionist policies this month and the dollar turned weaker, TDFs that maintained currency hedging strategies have outperformed by defending against the dollar's decline.

The Samsung Korea TDF is a life-cycle fund that adjusts its investment allocation based on the customer's retirement date. Various products are available in five-year increments from 2025 to 2060, depending on the retirement year. In particular, the 'Currency Hedged (H)' series has achieved both long-term stability and short-term performance by investing in global assets while minimizing currency volatility. In recent years, interest in preparing for retirement using dollar assets has grown due to the strong dollar, leading to increased investment in unhedged (UH) TDFs. However, after the tariff war triggered by the Trump administration in April led to a sharp decline in the dollar's value, more investors have been inquiring about switching to currency-hedged (H) products.

Shin Jaekwang, Executive Director of the Multi-Asset Management Division at Samsung Asset Management, said, "At the end of last month, we proactively responded to market shocks by reducing the proportion of risky assets in the Samsung Korea TDF series and increasing the level of currency hedging," and added, "We will continue to do our best to enhance stable performance so that we can support our customers' financial stability after retirement." He also mentioned, "As low volatility is as important as profitability, retirees approaching retirement should consider switching to currency-hedged products."

Samsung Asset Management supports customers in preparing for retirement with stability by leveraging its TDF management experience and company-wide Global Portfolio Investment Committee, as well as by actively responding to the market through diversified investments in leading global funds and active management.

Samsung Asset Management offers a wide range of TDF products tailored to different investment preferences and objectives, including 'Samsung Korea TDF', 'Samsung ETF TDF', and 'KODEX TDF ETF'. In particular, the Samsung Korea TDF has established itself as a leading solution for ensuring the financial stability of pre- and post-retirement customers through its active management and global diversification strategies.