Hanwha Asset Management noted on the 24th that the recent five-year revenue of target date funds (TDF) with an operating period of more than five years ranked in the top three of all vintage.
According to Korea Fund Evaluation Fund Square, as of 2nd of this month, the 'LIFEPLUS' TDF has ranked in the top three for the recent five-year revenue across various vintages such as 2025, 2030, 2035, 2040, and 2045.
'LIFEPLUS TDF2045' increased by 48.72%, followed by 'LIFEPLUS TDF2040' (45.34%), 'LIFEPLUS TDF 2035' (41.28%), 'LIFEPLUS TDF2030' (34.21%), and 'LIFEPLUS TDF 2025' (26.66%) according to the C-RPe (retirement pension) class standard.
The Hanwha Asset Management team explained that they achieved excellent performance through a differentiated strategy that applies different foreign exchange strategies based on asset type, investment ratio, and region. Differentiation in exchange strategy seeks optimal investment revenue by diversifying currency hedges based on type, investment weight, and region. The Hanwha 'LIFEPLUS TDF' pursues high revenue in the institutional sector of stocks while preparing for market shocks through unhedged strategies. Additionally, in the bond sector, it aims for revenue through hedging while managing portfolio risk.
The 'hybrid management' strategy, which utilizes both active and passive management styles, is also contributing to performance. For assets such as emerging market stocks or corporate bonds, which easily create alpha due to information asymmetry, an active management strategy is applied to maximize revenue. At the same time, for asset classes such as U.S. large-cap stocks or Government Bonds, where index replication is easy and the impact of stock selection is minimal, a passive management strategy is employed to minimize expenses. This also maximizes investment efficiency.
Cha Deok-young, head of the pension solution business division at Hanwha Asset Management, said, "The fact that all vintages of TDF ranked in the top three in the five-year performance is an indicator that demonstrates the ability to provide stable performance over the long term," adding that they will pursue historically validated asset allocation strategies steadily.