Mirae Asset leading mid-risk, mid-profit market

By Yoon Ja-young

Korea has entered an age of low interest rates, with banks offering slightly over 1 percent for savings. A low growth economy also seems to be inevitable as the country is losing economic steam with an overall aging of the population.

Low economic growth and low interest rates mean investors will have difficulty in accumulating assets. They are thus turning their eyes to mid-risk mid-return funds, in the hope of enjoying both profitability and stability. Mirae Asset Global Investments is trying to meet their demands by launching diverse funds in this market.

The biggest asset management company in the country has been leading in diverse segments of the market, ranging from funds that invest in securities and bonds to indirect investment vehicles. It is now suggesting diverse investment alternatives, such as those investing in under-valued stocks or high dividend paying stocks as well as long short funds that seek profit regardless of the stock market condition.

According to the Korea Financial Investment Association, the mid-risk investment products of Mirae Asset Global Investments, such as those investing in overseas bonds or making alternative investments, total 15 trillion won. This compares with other asset management firms which manage only 1.2 trillion won in such products on average.

The company explains that its strong infrastructure and overseas networks enabled it to rise as a powerhouse in the mid-risk, mid-profit market. Mirae Asset currently has 81 employees in charge of mid-risk, mid-profit funds, which is 25 percent of its total work force. This compares with the fact that the asset management companies in the country have on average 50 employees in total.

The investment managers have been building up their specialties as Mirae Asset has grouped them into diverse sectors such as multi asset investment using financial engineering, global fixed incomes, real estate, PEF and infrastructure investment.

It is also using its overseas networks in 12 countries. The funds that invest in overseas assets are managed by the management teams overseas, and the portfolio is set based on information collected through global research.