By Park Hyong-ki
Staff Reporter
Mirae Asset, one of the biggest investment management groups, apologized for failing to meet customers' expectations of high returns on their investment in its equity fund products.
Choi Hyun-man, CEO of Mirae Asset Securities, humbly asked its clients to trust in its asset management capability through the press, and vowed to step up its efforts to satisfy their needs by diversifying asset allocation.
``We are sorry for the steep losses,'' said Choi at a media briefing, adding that the group and its investment arms will push to upgrade its capital management system both at home and abroad.
``We will give all we've got through research services and diversified investment management to regain customers' trust,'' the chief executive added.
Amid the global stock market collapses on credit woes and inflation, Mirae Asset's domestic and overseas equity funds performed the worst among its peers.
According to Zeroin, a fund evaluating body, Mirae Asset Investments, the No.1 asset manager, lost over 7 trillion won, while managing the funds in the first half of this year.
In an effort to offset growing concerns over global stock jitters, the securities company has been recommending customers allocate their investment by a ratio of six to four on overseas and domestic funds, respectively. The ratio it advised customers last year was seven to three.
During the briefing, Choi repeatedly mentioned the importance of diversified asset allocation. To do so, it recruited two top foreign executives with rich experience in equities to head the company's research on Asian stocks to better provide information services to customers.
The company hired Ajay Kapur as the head of global strategy and economics and Rohan Dalziell as the head of regional company research. They will be based at the company's Hong Kong unit established early last year.
Kapur said, ``Although equity valuations are reasonably fair and liquidity is quite supportive, the earnings outlook is pretty ugly on global slowdown.''
``I'm afraid that we are stuck with higher oil prices for a while due to restraints on the supply side,'' he noted.
Both research executives refrained from giving specific investment advice as the company has not yet received a license from Hong Kong's financial authority.
However, in a bid to ease investors' concerns over its lackluster China funds operated by Mirae Asset Investments, Choi said, ``There is potential in China, which has gained a strong economic control. If investors don't get into the market to some extent, they may lose the opportunity."
Kapur also gave an optimistic outlook on China. ``The long-term story is very positive. It is truly incredible in terms of liquidity and sustainable growth.''
Most of its losses have derived from investing heavily in Chinese shares, accounting for over 50 percent of asset allocation in its Insight, BRICs and Chindia funds.