Shinhan Asset Management Launches 'Fast Response TDF' with Shortened Redemption Cycle

Shinhan Asset Management is set to launch the 'Shinhan Fast Response TDF' on September 10, aiming to strengthen its growth momentum in the Target Date Fund (TDF) market and proactively respond to rapidly changing market conditions.

This new product builds on the performance and expertise of Shinhan's existing TDF series, shortening the redemption cycle and further enhancing tactical asset allocation strategies to respond swiftly to market volatility.

Shinhan Asset Management has solidified its position in the domestic TDF market. Based on its Shinhan Maumpyeonhan TDF and Shinhan Long-Term Growth TDF, the company’s TDF assets have grown rapidly over the past five years.

Driven by strong long-term performance and active marketing, TDF assets under management reached 1.1681 trillion won as of the end of August, marking a sixfold increase from 192.3 billion won at the end of 2020. During the same period, the overall TDF market expanded from around 4 trillion won to 13.6 trillion won, nearly tripling in size. The growth of Shinhan Asset Management’s TDF products stands out, with its market share jumping from 4.5% to 8.5%.

The flagship product, 'Shinhan Maumpyeonhan TDF 2050,' recorded a 42.05% return over the past three years. During the same period, it achieved stable double-digit returns across all intervals: 13.34% over one year, 36.85% over two years, and 56.02% over five years. The fund has established itself as a suitable investment for retirement planning. The proven stability and growth of the existing TDF series laid the foundation for the launch of the Shinhan Fast Response TDF.

The Shinhan Fast Response TDF focuses on minimizing volatility risk by shortening the redemption cycle for greater liquidity and actively adjusting the allocation between risk and defensive assets through tactical asset allocation strategies in response to market conditions.

Kim Sunghoon, Head of the Multi-Asset Management Center at Shinhan Asset Management, stated, "The second half of this year is expected to be a period of significant uncertainty. The Fast Response TDF aims to maximize profit opportunities during market upswings, while swiftly reducing exposure to risk assets and shifting toward defensive stocks when risks increase."

He added, "With the launch of the Fast Response TDF, following the Maumpyeonhan TDF and Long-Term Growth TDF, we have established a full lineup of TDF products to meet diverse investor needs. We will continue to do our best to provide stable retirement planning solutions."