[Sponsored Report] Mirae Asset Global gets serious about retirement funds

Mirae Asset Global Investment hold a seminar on May 16 on creating an income for life. [MIRAE ASSET GLOBAL INVESTMENT]

Mirae Asset Global Investments is now the largest shareholder in private pension funds and retirement pension funds, worth 3 billion won ($2.6 million) each.

The company’s pension fund market share has grown to more than 20 percent, cementing its position as Korea’s leading pension fund manager.

According to the Financial Supervisory Service, at the end of 2017, the total personal pension pot amounted to 128 trillion won while the retirement pension fund amounted to 168 trillion won. Of that, investment funds accounted for 12.2 trillion won and 13.8 trillion won, respectively, a relatively small amount compared to insurance schemes, trusts and principal guarantee products, but the size of the funds has doubled since the end of 2014.

Mirae Asset’s pension fund is also growing steadily, more than doubling from 2.4 trillion won at the end of 2014.

In the meantime, Mirae Asset has launched a variety of products to grow its pension funds through investment.

As a result of the long-term investment pension system, investment funds need to consider both profitability and stability, as well as global factors and asset allocations, when handling pension funds. Mirae Asset provides investors with a portfolio that allows for global diversification and offers products that enable asset allocation to investment areas in addition to investment assets. It also offers alternative investment products, such as real estate, and provides stable investment solutions for pension asset management.

In particular, Mirae Asset’s Target Date Fund series enables automatic portfolio rebalancing when investors invest in funds with a certain target date. The company uses its own global network, with offices in 12 countries, rather than entrusting a foreign management company. Mirae Asset uses its global exchange-traded fund to minimize the loss of principal at the target date. This year, the fund has surpassed the 300 billion won mark.

Mirae Asset is also launching the Mirae Asset Lifetime Income Fund Series for retirement asset withdrawal. The product will be offered to investors who need cash flow after retirement, including the first real-estate rental income in Korea. Recently, investor options have expanded to allow for 100 percent retirement pension without withdrawal through the Mirae Asset Strategy Allocation TDF Solution.

Mirae Asset Global Investments has long been a leading player in the pensions market. In 2004, it established the Institute for Investment Education for the first time in the financial sector, leading the way in establishing a responsible investment culture. Mirae Asset’s Retirement Research Institute has also been working on retirement and investment education to help subscribers enjoy a stress-free retirement.

BY KIM HA-EUN [kim.haeun@joongang.co.kr]