Mirae Asset Securities is leading the retirement pension market by pioneering a new path for retirement investments combined with equity-traded funds (ETFs).
Last year, its reserves amounted to 16,989.9 billion won, accounting for 27 percent of the total securities industry. Following 2.5 trillion won in 2020, its reserves climbed by 3,945.7 billion won last year.
Over the past three years, the average increase rate of its reserves hit close to 30 percent.
The proportion of reserves from affiliates is also the lowest at 0.45 percent, boasting high purity. For subscribers who are dissatisfied with a low annuity rate, Mirae Asset Securities is showing a comparative advantage with its unrivaled rate of return.
Its defined contribution (DC)-type pensions and individual retirement plans (IRPs) are showing higher returns compared to competitors despite the sluggish stock market.
As of the end of March, Mirae Asset Securities posted return rates of 0.91 percent and 1.18 percent, respectively, while all other retirement pension business operators logged negative returns in their DC-type and IRP earnings-dividend-type retirement pensions for the past one-year period.
Due to the nature of retirement pensions, investors had big interest in long-term returns over the past three years. Returns of DC-type and IRP performance dividend-type retirement pensions reached 10.78 percent and 10.9 percent, making Mirae Asset Securities the only Korean securities with double-digit returns.
Mirae Asset Securities received high points from experts also in terms of its dedicated organization and human resources to boost its retirement pensions’ profitability and competitiveness and its employees’ education and consulting.
It has more than 200 employees specialized in retirement pensions and offers more than 1,000 products, providing subscribers with plenty of options. It ranked first in both quantitative and qualitative evaluations.
Launch of Private Pension Wrap
Mirae Asset Securities announced on June 2 that it launched a personal pension wrap account for the first time in the securities industry.
Personal pension wrap accounts are a service in which the head office’s professional managers manage subscribers’ personal pension accounts according to market conditions.
Mirae Asset Securities explained that it was launched for customers who find it difficult or cumbersome to directly invest and manage their personal pensions.
Mirae Asset Securities announced that it plans to draw up optimal asset allocation plan based on its global asset allocation capabilities and provides various types of portfolios suitable for customers’ investment propensities.
Mirae Asset Securities has decided to flexibly respond to market changes by making changes in regular portfolio products and controlling their weights and to conduct thorough follow-up management through continuous performance checks.
A view of the International Financial Center (IFC) Building. (Photo: Mirae Asset Global Investments)
MOU on IFC Building Purchase
On May 30, Mirae Asset Global Investments announced that it signed a memorandum of understanding (MOU) on the purchase of the International Financial Center (IFC) Building in Yeouido, Seoul.
Mirae Asset Global Investments signed the MOU with Brookfield Asset Management on May 26 to purchase the IFC building and completed payment of a deposit. The two companies plan to complete payment of the balance within the third quarter.
Brookfield Asset Management will pay tax on the sale of the edifice to the Korean government.
The IFC consists of five real estate properties — three office buildings, Conrad Hotel and IFC Mall. Five domestic special purpose corporations (SPCs) own each of them.
Through this transaction, Mirae Asset Global Investments will take over shares from the five domestic SPCs.
Brookfield Asset Management will pay corporate tax on capital gains to the Korean government in accordance with Korean law.
If Mirae Asset Global Investments takes over the IFC, the owner of the major building in Yeouido, the financial center of Korea, a Korean company will become the owner of the edifice for the first time.
The IFC Building was built by AIG, an American multinational financial company.
AIG sold it to Brookfield Asset Management, a Canadian alternative asset management company, in 2016.
After the completion of the IFC building, it earned about 1 trillion won in rents.
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