Published : Aug. 21, 2014 - 20:30
Mirae Asset Financial Group’s headquarters in central Seoul. (Mirae Asset Financial Group)
Mirae Asset Global Investments, the No. 1 asset management company in terms of profits, has proven itself to be at the top of the game by realizing sustainable profit from its consumer funds.
Its consumer funds ― funds investing in top-ranking consumer goods ― recorded an average return rate of 42.06 percent over the past three years, compared to 17.6 percent in its first year of operation, according to Mirae Asset officials.
Considering that the funds operated by most local asset management companies reap single-digit earnings, its performance is far ahead of the industry’s average.
The Great Consumer Fund invests in companies that can capitalize on the long-term sustainable trend of growing consumption. (Mirae Asset Financial Group)
“The consumer sector, with its wide diversity of categories, offers quite an abundant selection of business opportunities ranging from low-cost food and beverage to premium automobiles,” said Park Won-jin, Mirae Asset’s director in charge of retail marketing.
The company is focused on travel, gaming, health care, distribution and luxury items, as these segments are likely to grow in proportion to the steadily increasing consumer population, according to Park.
The investment affiliate of Mirae Asset Financial Group first set foot in the consumer fund sector in 2006 with the Asia-Pacific Consumer Advantage Securities Investment Trust and Solomon Asia-Pacific Consumer Securities Investment Trust.
The two equity funds respectively produced a 13.18 percent and 8.51 percent return during the first year, which later soared to 41.21 percent and 40.5 percent.
The most profitable product so far is the Asia Great Consumer Fund, established in 2011. Its three-year average return rate stands at 56.21 percent, with assets amounting to 898 billion won ($877 million).
“Mirae Asset is also operating funds in Hong Kong and the United States, and has business networks in 12 major countries around the world,” Park said. “We will continue to discover undervalued companies with high growth potential.”
Boosted by the success of its consumer funds, the company recorded a net profit of 44.3 billion won in the second quarter, far outperforming KB Asset Management’s 26.3 billion won, the Financial Supervisory Service said Thursday.
By Bae Hyun-jung (tellme@heraldcorp.com)