Mirae Asset Securities confident in ISA competition

By Nam Hyun-woo

Mirae Asset Securities said Thursday that it will appoint managers who will regularly monitor the yields of its individual savings account (ISA) customers at its branches, in a bid to offer customers tailored asset management methods.

An ISA, which debuted in Korea earlier this week, is a type of savings account where taxes are not collected from interest earned or gains from investments up to a set value. Various types of other financial products are also attached to the account.

There are two types of ISA products. One is trust-based, which allows customers to choose what financial products to invest in and determine the amount. The other is for customers to choose a model portfolio and give the financial institutions discretion in selecting products and rebalancing their accounts.

Since this marks the first time that banks are allowed to make retail investments, previously the sole domain of securities firms, both banks and brokerage houses are bracing to compete with each other.

“For those who prefer deposits and products having stable interest rates, they should go for the trust-based ISA,” Mirae Asset Securities said in a statement. “However the other type, which plays to the securities firms’ strengths, is good for investors who prefer funds and other investment-weighed products and want their portfolios to be adjusted to the constantly changing investment environment.”

Since one customer can open only one ISA and the required term is five years, selecting an institution is a key factor, the company said.

“Mirae Asset Securities’ strength lies in its wrap account products, which reflects each customer’s demand,” the company said. “Based on global asset allocation strategies and model portfolios, the company will suggest tailored asset management methods for customers.”

Through a system monitoring investment ratios of each financial product, the company will place a ceiling on that of a single product so that it can curb excessive investment, the company said.

“ISA is deemed as an efficient tool in the current tendency of low interest rates. In order to manage an ISA efficiently, various portfolios, delicate control of investment ratios and changing products in a timely manner are critical,” the company said.