[2021 Asia Fund Awards] Outstanding Performance Despite COVID-19 Challenges... New ESG Category Established Instead of Domestic Equity Type

Evaluation Comments = Jeong Sunseop, Chair of the Jury (Professor at Seoul National University School of Law)

Despite the challenging domestic stock market conditions last year due to COVID-19, asset management companies achieved excellent performance in all aspects, including product development and management. The judging committee selected the companies to receive this year’s Fund Awards through written evaluations and qualitative assessments.

This year, the Fund Awards hosted by Asia Economy cover the categories of domestic bond funds, overseas equity funds, retirement pensions, exchange-traded funds (ETFs), and ESG (Environmental, Social, and Governance). Due to the activation of direct investment last year, there were no applicants for the domestic equity fund category. Although investors’ preference for risk assets increased, the returns were not favorable compared to direct investment because of restrictions on the proportion of specific stock holdings under the Capital Markets Act. This reflects the difficulties faced by asset management companies.

Although the market was unfavorable last year, investor sentiment toward investing in advanced companies with strong environmental, social, and governance practices grew. Considering the efforts of asset management companies to meet this demand, the ESG category was newly established this year.

The Asia Economy Fund Award was won by Mirae Asset Global Investments. Despite increased volatility in the stock market due to COVID-19 last year, Mirae Asset Global Investments recorded continuous growth, expanding assets under management to 210 trillion KRW. By category, the size of individual pension and retirement pension funds reached 3.8569 trillion KRW and 4.4065 trillion KRW respectively, both ranking first in the industry. In ETFs, the company maintained an unshakable number one position and has grown into a large asset management firm ranked 16th globally in net assets.

Kyobo AXA Asset Management was selected as the best domestic bond fund manager. The Kyobo AXA Tomorrow Long-term Quality Securities Investment Trust K-1 (Bond) fund, managed since 2006, is the company’s flagship public bond fund. It is a large fund with assets under management of approximately 920.2 billion KRW (as of the end of December 2020) and received the highest score among applicants for the 2021 Asia Economy Fund Awards.

Samsung Asset Management was chosen as the best overseas equity fund manager. Major overseas funds such as Samsung Korea-style TDF, Samsung ASEAN Fund, and Samsung Pictet Robotics Fund have established themselves as industry-leading funds with long-term and stable performance. They achieved outstanding returns even amid the severe volatility and unstable global financial environment caused by COVID-19.

Korea Investment Management won the best retirement pension fund manager award. The Korea Investment TDF Self-Directed Fund series recorded assets under management of 586.5 billion KRW and showed higher returns compared to other funds.

Mirae Asset Global Investments was selected as the best ETF manager. Mirae Asset Global Investments operates and lists about 390 ETFs across 11 countries including Korea, the United States, Canada, Australia, and Hong Kong. As of the end of December, the total net assets amounted to 65.7 trillion KRW, exceeding the combined size of the domestic ETF market, which was 52 trillion KRW at the same time.

Shinhan Asset Management was chosen as the best ESG manager, a newly established category this year. Shinhan Asset Management has been investing in ESG-related sectors such as cleantech, green buildings, renewable energy, and railroads through various responsible investment funds. For the best funds, KTB Asset Management’s KTB Global 4th Industrial Revolution Leading Stocks Securities Investment Trust was selected in the overseas equity category, KB Asset Management’s KB On National TDF in the retirement pension category, and Kiwoom Asset Management’s Kiwoom Future Energy Securities Investment Trust No.1 in the ESG category. Samsung Securities was awarded the best sales company award, receiving the highest overall score based on sales balance size, growth, and returns.

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