Hanwha Asset Management reported on the 3rd that the net worth of its defined benefit (DB) retirement pension discretionary investment private fund has surpassed 1 trillion won.
As of the end of last month, the size of Hanwha Asset Management's DB retirement pension discretionary investment private fund recorded 1.0224 trillion won, growing nearly nine times since the business began in earnest in 2023. Compared to the approximately 60% growth of the DB retirement pension performance dividend market during the same period, this is 13 times faster than the market.
Retirement pensions are divided into defined benefit (DB) and defined contribution (DC) plans. Under DB, the company contracts with a financial institution to manage the accumulation, and when an asset management company is entrusted with DB funds, it can only invest in performance dividend products.
Hanwha Asset Management explained that the differentiation of its products and the expertise in consulting worked to its advantage. The company continuously develops new products that can alleviate customer burdens regarding performance dividend investments and has strengthened its consulting capabilities to ensure that customers can clearly and easily understand the management strategies and investment processes.
Additionally, through a specialized organization for retirement pensions, it provides differentiated solutions, such as publishing a DB retirement pension guidebook and an asset-liability management (ALM) guidebook. In particular, it is striving to enhance its management quality by launching funds utilizing advanced management strategies like ALM.
Choi Young-jin, head of marketing at Hanwha Asset Management, noted, "If we cannot increase the revenue of retirement pensions, the burden could be passed on to the government or future generations," adding, "To improve revenue, performance dividend investments are necessary, but currently, there are not many customer investments due to concerns about volatility."
He continued, "Hanwha Asset Management is rapidly pioneering the market and contributing to the qualitative growth of the retirement pension market through the development of customized solutions that can alleviate customer burdens and strengthening its consulting capabilities."