Ritz Focuses on Income Returns with Alternative Assets like Real Estate and Bonds Mixed
Incorporates Bonds to Reduce Volatility↓
[Asia Economy Reporter Minwoo Lee] Mirae Asset Global Investments is launching a product that incorporates alternative assets such as domestically listed REITs, real estate, and infrastructure funds, as well as bonds.
On the 22nd, Mirae Asset Global Investments announced that it will list the 'TIGER KIS Real Estate Infrastructure Bond TR Listed Index Fund (ETF)' and hold events for trading customers.
This product includes alternative assets such as domestically listed REITs, real estate, and infrastructure funds, as well as domestic bonds and bond ETFs. Regardless of capital gains or losses arising from valuation and trading, it focuses on 'income returns,' which are cash flows generated from physical assets during the holding period. Additionally, it was explained that bond assets were also invested in to reduce volatility.
The underlying index is the KIS Real Estate Infrastructure Bond TR Index. It is calculated by mixing alternative investment indices and bond indices and bond ETF indices in a 7:3 ratio on a daily basis. As of the end of last month, it includes 70% alternative assets such as Mapletree Realty 1, Macquarie Infrastructure, iREITs Core REIT, Shinhan Alpha REITs, and Lotte REITs, and 30% bond assets.
It is also possible to invest through personal pension and retirement pension accounts. According to the government's 'Public Real Estate Indirect Investment Activation Plan,' if investing in public REITs and real estate funds for more than three years by the end of next year, investors will receive a separate tax benefit on dividend income for three years up to a limit of 50 million KRW. Accordingly, a lower tax rate of 9% is applied compared to the existing 14%, and progressive comprehensive income tax rates applied when financial income exceeds 20 million KRW annually are excluded.
Various events will be held to commemorate the listing. Through Mirae Asset Daewoo, from the 25th of this month to the 19th of next month, over four weeks, the top 13 customers who trade more than 400 million KRW daily will receive cultural gift certificates worth 50,000 KRW. On the 25th, a webinar introducing domestic REIT investment strategies and the 'TIGER KIS Real Estate Infrastructure Bond TR ETF' is also prepared. Research Fellow Kwangsoo Lee from Mirae Asset Daewoo Research Center and Team Leader Seunghyun Kim from Mirae Asset Global Investments ETF Marketing Division will serve as instructors. Applications can be made on the Mirae Asset Global Investments website.
Kwon Ohseong, head of the ETF Marketing Division at Mirae Asset Global Investments, said, "Through the TIGER KIS Real Estate Infrastructure TR ETF, investors can maximize income returns while enjoying the advantages of ETFs such as trading convenience and low fees," adding, "TIGER ETF, which has built the largest lineup domestically, will continue to introduce various products to help investors compose their portfolios."
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