NH Investment & Securities Publishes Report on "Retirement Asset Management Starting with TDF"

NH Investment & Securities Publishes 118th Issue of THE100 Report

NH Investment & Securities 100-Year Life Research Center announced on February 25 that it has published the 118th issue of its THE100 Report, titled "Retirement Asset Management Starting with TDF," which provides an in-depth analysis of changes in the retirement pension management structure and the role of Target Date Funds (TDFs).

The 118th issue stresses that, amid the growth and structural transformation of the retirement pension market, TDFs need to be understood not merely as products that pursue returns, but as "long-term asset management tools" that automatically adjust asset allocation in line with the retirement date.

The report presents key criteria that investors should review, including an understanding of glide paths and the difference between the To and Through structures, as well as methods for checking asset allocation design after the target year. It also uses examples of financial market volatility in 2022 to explain that TDFs can likewise experience short-term losses, while analyzing how the principles of compounding and asset allocation work over the long term. Through this, the report explains that "retirement asset management starting with TDF" is an issue of long-term structural design rather than short-term performance.

Kim Dongik, head of the NH Investment & Securities 100-Year Life Research Center, said, "Retirement asset management is not about timing the market in the short term, but about choosing a structure that can withstand the passage of time over the long term," adding, "TDFs can serve as a practical alternative that systematically implements the principles of compounding and asset allocation."

The THE100 Report is a research publication by the NH Investment & Securities 100-Year Life Research Center that covers a wide range of topics, including stable lifetime asset management for the 100-year life era and aging trends, and has been published continuously since 2014.