Mirae Asset Daewoo Achieves Overall 1st Place in DC and IRP Retirement Pension Returns Last Year

Q4 2019 Announcement: Retirement Pension 1-Year Returns DC 6.59%, IRP 5.66%, Ranked 1st Among All Operators
Improved Returns Through Diverse Global Asset Allocation Including Retirement Pension Wrap, TDF, ETF
Retirement Pension Reserves Reach 10.5 Trillion KRW, Competing with Systematic Pension Customer Asset Management

[Asia Economy Reporter Song Hwajeong] Mirae Asset Daewoo announced on the 21st that it ranked first among all 42 operators in both the Defined Contribution (DC) and Individual Retirement Pension (IRP) systems in the one-year publicized return rate of retirement pensions based on the fourth quarter of last year.

Mirae Asset Daewoo's one-year returns by retirement pension system recorded 6.59% for DC, 5.66% for IRP, and 2.09% for Defined Benefit (DB). The DC and IRP returns showed outstanding performance compared to other operators, and the DB return also exceeded 2%, higher than the overall operator average of 1.86%.

In particular, the securities industry showed excellent returns. The average returns by industry and system were 4.25% for securities DC and 4.21% for IRP, whereas banks recorded 2.17% for DC and 2.27% for IRP, and life insurance recorded 2.73% for DC and 2.20% for IRP. Compared to banks and insurance companies, which mainly operate principal-guaranteed products such as deposits and insurance, the securities industry, which diversifies investments through investment products, generally showed higher returns.

Mirae Asset Daewoo achieved outstanding performance in non-principal-guaranteed product returns. With 10.35% for DC and 9.53% for IRP, it was the only operator to show returns around 10% in both systems. It is evaluated that Mirae Asset Daewoo’s differentiated pension product supply capability and provision of various performance-based dividend products were major driving forces in achieving the top return rate.

The retirement pension wrap, uniquely provided by Mirae Asset Daewoo among retirement pension operators, features asset management experts at Mirae Asset Daewoo headquarters constructing a global asset allocation portfolio and regularly rebalancing it to manage returns steadily and stably.

As of the end of 2019, the balance was 906.5 billion KRW, and the representative type, Active40, launched in February 2009, has accumulated a return of 79.5%, recording an average annual return of 5.5%.

Additionally, focusing on improving customer returns by expanding the proportion of pension-suitable products such as Target Date Funds (TDF), which automatically adjust the proportion of investment assets according to the life cycle, proved effective.

Moreover, Mirae Asset Daewoo meets customer demand for stable dividend income by being the first in the industry to provide trading services for Exchange-Traded Funds (ETF) and Exchange-Traded Notes (ETN), as well as offering listed REIT trading services in DC and IRP accounts since last December.

Kim Ki-young, Head of the Pension Solutions Division at Mirae Asset Daewoo, said, “Mirae Asset Daewoo continuously emphasizes the necessity of long-term investment in high-quality assets for retirement pension asset management and provides various products that meet customer needs. We plan to strengthen asset management for pension customers more thoroughly and systematically through nationwide branches and pension asset management centers.”