"Top Performer" Hanwha LIFEPLUS TDF 2040, 2045 Achieve Leading Returns

Hanwha Asset Management announced on January 20 that the Hanwha LIFEPLUS TDF 2040 and 2045 recorded the highest annual returns last year.

According to Korea Fund Ratings' Fund Square, Hanwha LIFEPLUS TDF 2040 and 2045 posted annual returns of 17.86% and 19.62%, respectively, last year. Other vintages, including 2020, 2025, 2035, 2050, and 2060, also ranked second, with all vintages placing in the top tier. Over a five-year period, all vintages ranked within the top three for long-term returns. This is a notable point for pension funds with relatively long investment horizons.

Hanwha Asset Management cited its asset allocation strategy utilizing JP Morgan's global research capabilities, a hybrid active-passive management approach, and a differentiated currency strategy as key drivers of its performance.

Hanwha TDF applies different management strategies depending on the asset class. For U.S. mid- and small-cap stocks and high-yield bonds, where information asymmetry exists and alpha generation is more feasible, an active management approach is used. For U.S. large-cap stocks and inflation-linked bonds, where efficient market characteristics limit alpha generation opportunities, a passive management approach is adopted. Currency strategies also vary by asset: for equities, currency exposure is maintained to seek additional returns, while for bonds, currency is hedged to secure stable interest income.

The increased allocation to Korean and European equities, based on JP Morgan's asset allocation strategy and diversified portfolio, contributed significantly to performance. In addition, the hybrid active-passive management strategy enabled outperformance tailored to the characteristics of global markets. For bonds, reducing the allocation to Korea and increasing exposure to the United States also produced strong results.

Hanwha Asset Management stated that maintaining investment principles amid market volatility, based on ongoing collaboration with JP Morgan, is the key to consistent performance. Since its launch, LIFEPLUS TDF has maintained its partnership with JP Morgan without interruption.

Choi Youngjin, Vice President of Hanwha Asset Management, said, "For TDFs, which are representative pension investment products, it is essential to pursue long-term stable returns through lifecycle-based volatility management. Based on advanced management capabilities such as JP Morgan's global asset allocation strategy and research expertise, we will continue to deliver solid returns going forward."