Mirae Asset Daewoo Ranks First in IRP Returns for Q2

IRP 1-Year Return at 2.30% as of Q2 End, Ranking 1st Among All Retirement Pension Providers
DC Return Also at 2.84%, Ranking 2nd Overall. Outstanding DC and IRP Return Management Skills
Focused on Enhancing Customer Returns Through Pension Asset Management via Global Diversification

[Asia Economy Reporter Song Hwajeong] Mirae Asset Daewoo announced on the 20th that its individual retirement pension (IRP) one-year return rate was 2.30%, ranking first among all retirement pension providers based on the retirement pension return rate disclosure as of the end of Q2 2020.

The defined contribution (DC) return rate also recorded 2.84%, ranking second overall, showing a strong performance in individual pension returns. In particular, the principal-guarantee-not-provided product returns were excellent, with DC at 3.67% and IRP at 3.18%. Only three out of 43 providers recorded returns exceeding 3% for both DC and IRP principal-guarantee-not-provided products.

Unlike the defined benefit (DB) plans, which are mainly managed with principal-guaranteed products such as deposits, DC and IRP customers show high interest in investment products aimed at increasing returns. Mirae Asset Daewoo meets this demand by offering various performance-based products and leading a culture of diversified investment in global quality assets.

Additionally, the company operates educational programs to enhance the asset management capabilities of wealth management (WM) staff and regularly monitors pension asset management status and performs asset rebalancing to ensure thorough return management.

Each quarter, funds with poor long-term returns are selected and rebalanced into funds suitable for current market conditions. For customers with large amounts of cash assets, guidance on management methods is provided. Customers who find face-to-face consultations difficult are offered non-face-to-face consulting through the Pension Asset Management Center to increase satisfaction.

For customers who want to actively manage their retirement pensions but find asset management challenging, pension asset management is conducted using retirement pension wrap accounts and target date funds (TDFs). These products are managed by the company’s experts, so subscribers do not need to worry about trading or portfolio decisions themselves.

Mirae Asset Daewoo’s retirement pension wrap was first established in February 2009 and has been managed for over 10 years, currently with about 20,000 DC and IRP customers enrolled. The TDF, which automatically adjusts the portfolio according to the investor’s retirement timing and life cycle, has recently contributed to increasing pension account returns as its returns have risen.

Kim Ki-young, Head of the Pension Solutions Division at Mirae Asset Daewoo, said, “In the zero-interest-rate era, interest in investment products is expected to increase further, and the proportion of products such as funds, exchange-traded funds (ETFs), and REITs is rising in our DC and IRP accounts. Our asset allocation capabilities based on a global network and differentiated pension products are Mirae Asset Daewoo’s unique strengths. We will focus all efforts on improving pension customers’ returns through diversified investment and continuous monitoring of asset management status using these strengths.”

Mirae Asset Daewoo recently became the first securities company to surpass 15 trillion KRW in pension assets (retirement and individual pensions), and last month, IRP reserves also exceeded 2 trillion KRW, showing rapid growth in pension assets.

For detailed consultations related to pensions, customers can contact the Pension Asset Management Center.

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