Mirae Asset‘s target date fund tops yearly returns

Mirae Asset Global Investments, South Korea’s asset management firm, had its target date fund product rank No. 1 in terms of yearly return on the Korean market.

A TDF refers to a collective investment scheme in the form of a mutual fund or collective trust fund, whose asset allocation mix of the portfolio becomes conservative -- largely from equities to bonds -- in the coming of an individual investor‘s target date, typically for retirement. The scheme was introduced in the early 1990s.

Mirae Asset’s fund targeting those who plan for retirement in 2045 had yielded a 14.47 percent yearly return as of Wednesday, according to fund evaluator KG Zeroin. The figure marked the highest of all existing TDFs sold in Korea, according to the company.

The fund product, dubbed “Mirae Asset Strategy/Allocation TDF 2045” is one of 10 TDFs sold by the firm. The volume of assets managed under the 10 TDFs has topped 200 billion won ($187.5 million), according to the firm.

All overseas investments for asset allocation of the 10 TDFs are made through overseas corporations affiliated to Mirae Asset Global Investments, instead of entrusting the procedure to foreign companies.

Mirae Asset Global Investments has been growing its presence in the national pension fund market. Over 22 percent of assets in Korean pension funds are managed under Mirae Asset Global Investments, according to the company.

By Son Ji-hyoung (consnow@heraldcorp.com)