As of the end of last year, Mirae Asset Global Investments has topped the TDF market in Korea in a dominant fashion. Photo courtesy of Mirae Asset Global Investments

Korean asset management firm maintains dominant leader’s spot

Mirae Asset Global Investments announced on Jan. 11 that its market share in the TDF market had exceeded 43 percent as of the end of last year.

The total TDF market stood at 8.1 trillion won ($6.6 billion) on Dec. 31, and among them, Mirae Asset carved out up to 3.5 trillion won ($2.8 billion).

Compared to a year before, the trust money of Mirae Asset’s TDF surged by 1.5 trillion won ($1.2 billion) in just 12 months, according to the Seoul-based asset management company.

The runner-up player failed to reach half of the trust funds compared to Mirae Asset.

When it comes to TDF profitability, Mirae Asset noted that it had been second to none.

Short for target date fund, TDF is a collective investment scheme that is geared toward providing a simple investment solution through a unique portfolio.

It typically mixes several different types of stocks, bonds, and other investments to help investors take more risks when they are young and gradually get more conservative later.

There are two ways to operate TDF, which is also called a lifecycle fund, age-based fund, or dynamic-risk fund.

One is for an asset management firm to operate the fund itself, and the other is to let foreign players handle it.

Mirae Asset has opted for the former from the very beginning to save commissions, which the firm said had led to higher profitability for end customers.

“The operation mode greatly affects the total return. Our products do not generate commissions because we operate them. That’s why our profitability is higher than others,” a Mirae Asset official said.

The publisher studied Korean history in Seoul and management of business administration in the United Kingdom. He has 20-year experiences in the media business. Kim can be reached at voc200@gmail.com or 82-2-6956-6698.