A claim has emerged that loss control is more important than returns when managing retirement assets. The analysis says investors should choose a strategy that reduces exposure to risk assets because large drawdowns near retirement are hard to recover.
NH-Amundi Asset Management held the "Hanaro TDF investment strategy briefing" with Allspring at 9:30 a.m. on the 18th at The Plaza Hotel Seoul.
On the day, Frank Cooke, head of Global Solutions, cited the glide path as a key strategy for achieving retirement outcomes. A glide path is an asset allocation track that systematically adjusts the share of risk assets such as stocks over time.
Cooke said, "Even with the same rate of return, if losses occur right before retirement, the size of retirement assets can shrink significantly," and emphasized, "When managing long-term retirement assets, the timing and magnitude of losses matter more than the rate of return."
Cooke cited the monthly return distribution since inception of "Hanaro Qualified TDF 2030" and the KOSPI index as an example. He said that while a single stock index like KOSPI delivered much higher returns than the TDF in some periods, it posted larger losses during corrections.
Matthias Schieber, head of Multi-Asset, assessed Korea's stock market as a diversified field of opportunity beyond semiconductors. He highlighted promising sectors in the Korean market as ▲ artificial intelligence (AI)-related industries (robots, power equipment, nuclear power) ▲ reindustrialization themes (defense industry, shipbuilding) ▲ corporate governance reform (resolving undervaluation and expanding shareholder returns) ▲ K-culture.
Schieber advised that, given the heightened volatility of Korean stocks, investors considering long-term horizons should invest in markets with higher interest rates.
Schieber said, "Recently, returns in the Korean stock market have been solid, but the risk remains high in terms of volatility," adding, "If certain stocks surge, high returns may be possible, but conversely, a plunge can affect the entire market and pose a risk for long-term investors."
He added, "Diversifying not only into Korean stocks but also into foreign stocks and bonds across various assets is effective for long-term performance and risk management," and said, "Hanaro TDF does not rely on the performance of any single asset class; it is generating stable outcomes across vintages through a global diversification strategy that includes domestic and overseas stocks and bonds."
Kim Seok-hwan, Head of Team for Solutions, presented the performance and future plans of Hanaro Qualified TDF. Kim said, "As of May 31, based on managed funds, Hanaro Qualified TDF ranked first in its category for five-year returns with the 2025 vintage (39.52%)," and explained, "the 2030 (56.94%), 2035 (65.83%), and 2040 (72.54%) vintages each ranked second, keeping key vintages near the top."
Kim, the Head of Team, assessed that Hanaro Qualified TDF's performance was driven by an active asset allocation strategy.
Kim said, "Amid market corrections this year due to geopolitical risks, we proactively reduced our equity weight to address volatility, then expanded it again as uncertainty eased and captured return opportunities in the rebound phase," adding, "For bonds, we maintained a reduction stance to manage risk in light of rising rate risks."
Kim added, "We actively adjusted hedge ratios in line with exchange-rate moves to improve the profitability of foreign-currency assets, and the inclusion of Allspring's global funds also helped generate additional excess returns."
NH-Amundi Asset Management plans to expand the maximum allocation limit to Korean stocks up to 10%, focusing on the AI supercycle going forward. It intends to pursue both growth and stability by investing globally across the AI industry, not only in memory semiconductors but also GPUs, CPUs, and AI services.