Mirae Asset Life Insurance's MVP Fund Surpasses 2 Trillion KRW in Net Assets with 52.7% Cumulative Returns

Mirae Asset Life Insurance announced on the 2nd that the MVP Fund, launched in April 2014, has accumulated assets of 2 trillion won in the shortest period, gaining attention as the optimal solution for securing stable long-term returns in a low-interest-rate era.

[Asia Economy Reporter Oh Hyung-gil] Mirae Asset Life's variable insurance MVP fund has surpassed 2 trillion KRW in net assets.

Mirae Asset Life announced on the 2nd that the MVP fund, launched in April 2014, has accumulated 2 trillion KRW in assets in the shortest period, gaining attention as the optimal alternative for securing stable long-term returns in a low-interest-rate era. The cumulative return rate reaches 52.7%.

The MVP fund is Korea's first discretionary asset allocation fund. Asset management experts monitor the global financial market and conduct quarterly asset rebalancing. It is characterized by reducing volatility and minimizing the possibility of a sharp decline in returns.

A Mirae Asset Life official explained, "Rather than mechanical asset allocation that simply meets fixed limits for stocks and bonds, we pursue a strategy reflecting global market conditions and trends," adding, "Immediately after the outbreak of COVID-19, we captured the rise of non-face-to-face interactions across the economy and boldly increased the IT and software portfolio, which already held a significant proportion, during the downturn, enabling a rapid recovery in returns during the rebound."

MVP fund managers plan to continue monitoring IT development and consumption trends while maintaining steady communication with global managers to invest in companies overcoming COVID-19 and accelerating growth.

Based on the global diversification investment principle of investing 65% of total variable insurance assets in overseas assets, Mirae Asset Life leads the industry in total asset returns for 3-year and 5-year variable insurance as of the end of August. The initial premium for variable insurance recorded 522 billion KRW in the first half of this year, achieving an overwhelming 48% market share in the domestic variable insurance market.

Jung Sung-sik, Head of Asset Management Division at Mirae Asset Life, said, "Mirae Asset Life is the first in the industry to provide asset management services using a global asset allocation strategy in variable insurance funds," adding, "Based on Mirae Asset Life's competitive edge as the industry's long-term return leader, we expect more customers to prepare for a happy retirement plan by reasonably investing in global quality assets through the MVP fund."