Mirae Asset Global Investments, Which Weathered COVID-19 with Balanced Investments, Reports 60 Billion KRW Net Profit in 1Q

Contrasting the Decline in Asset Management Industry Performance
Balanced Portfolio from Cloud and Untact to Alternative Investments and Pensions

Provided by Mirae Asset Global Investments

[Asia Economy Reporter Minwoo Lee] Mirae Asset Global Investments recorded a net profit of 60 billion KRW in the first quarter of this year through balanced investments. It is being praised for performing well despite the COVID-19 crisis thanks to its balanced investment approach.

Mirae Asset announced on the 11th that its net profit for the first quarter reached 60 billion KRW, a 31% increase compared to the same period last year. This contrasts with the decline in performance seen among major asset management companies in the industry due to COVID-19. According to the financial investment industry, the combined net profit of 282 domestic asset management companies in the first quarter was 185.6 billion KRW, a sharp 39% drop from 304.3 billion KRW in the first quarter of last year. Mirae Asset Financial Group recorded operating profit, pre-tax profit, and net profit of 1.116 trillion KRW, 1.5392 trillion KRW, and 1.1432 trillion KRW respectively last year.

The background of this achievement is attributed to the management team, including Hyun-Joo Park, Global Investment Strategy Officer (GISO) and Hong Kong Chairman of Mirae Asset Daewoo, who laid the foundation for investment. Currently, Mirae Asset has established a revenue structure encompassing domestic and overseas markets, as well as traditional and alternative investments. As of the end of April, out of approximately 167 trillion KRW in total assets under management, traditional assets such as equity funds amount to 25 trillion KRW, bond funds 35 trillion KRW, alternative investments 20 trillion KRW, and exchange-traded funds (ETFs) 42 trillion KRW, maintaining a balanced portfolio with each asset type accounting for around 20%. Overseas investment assets also reach 74 trillion KRW (47%).

Marking its 17th year of overseas expansion, Mirae Asset manages over 1,700 products across 36 countries worldwide. It began its overseas expansion in 2003 by launching Mirae Asset Global Investments (Hong Kong), the first overseas asset management subsidiary in Korea, and introduced the country's first overseas fund, the 'Mirae Asset Asia Pacific Star Fund,' in 2005. Subsequently, it established subsidiaries in India, the UK, the US, and Brazil, and acquired ETF-specialized asset management companies in Canada and Australia. In 2018, it actively expanded overseas by acquiring the US ETF manager Global X.

Meanwhile, Mirae Asset is also strengthening its ETF business in overseas markets. As of the end of April, Mirae Asset manages 10 trillion KRW in Korea's 'TIGER ETF,' 12 trillion KRW in the US 'Global X,' 10 trillion KRW in Canada's 'Horizons ETF,' and 8 trillion KRW in Australia's 'BetaShares ETF,' and sells ETFs in eight countries including Hong Kong and Colombia. The total number of ETF products is 368, with assets under management reaching 43 trillion KRW.

In particular, the 'Global X CLOUD ETF,' which focuses on cloud computing amid the untact (non-face-to-face) trend, has surpassed net assets of 740 million USD (880 billion KRW). As of the closing price on the 9th, its year-to-date return was 24.98%. This exceeds by about 10 percentage points the 15.81% return of the 'First Trust SKYY ETF,' the largest cloud computing ETF globally. Listed on the US Nasdaq market, this product is known to have been strongly supported by Chairman Park even before its launch.

Mirae Asset is also focusing on alternative investments. The total alternative investment assets under management by Mirae Asset Global Investments exceed 20 trillion KRW. Additionally, in response to the aging society, it has strengthened its pension business by establishing the first-ever marketing headquarters for individual pensions and retirement pensions in the asset management industry. The size of Mirae Asset Global Investments' individual pension and retirement pension funds exceed 3.7 trillion KRW and 4 trillion KRW respectively, increasing by about 700 billion KRW this year alone. Furthermore, the Mirae Asset Target Date Fund (TDF) series, which rebalances portfolios according to target dates, surpassed 1 trillion KRW in assets under management for the first time among domestic asset management companies.

This content was produced with the assistance of AI translation services.