As of the end of Q3, DC 1-year return rate at 4.80%, ranked 1st among all retirement pension providers
IRP return rate also at 4.04%, ranked 1st for two consecutive quarters
Mirae Asset Daewoo is the only provider with both DC and IRP returns above 4% among all providers
[Asia Economy Reporter Song Hwajeong] Mirae Asset Daewoo announced on the 22nd that it ranked first among all providers in the 1-year publicized return rate for retirement pensions as of the end of the third quarter of 2020, including both Defined Contribution (DC) and Individual Retirement Pension (IRP) plans.
The DC return rate recorded 4.80%, rising 1.96 percentage points from 2.84% in the previous quarter. Among the top 10 large providers by accumulated funds, it achieved the highest return rate for six consecutive quarters.
The IRP return rate also recorded 4.04%, up 1.74 percentage points from 2.30% in the previous quarter, securing first place overall for two consecutive quarters. Notably, Mirae Asset Daewoo was the only provider across banks, securities, and insurance sectors to exceed a 4% combined return rate for DC and IRP.
The reason Mirae Asset Daewoo could rank first in returns for both DC and IRP schemes is attributed to its provision of differentiated products aimed at improving returns and systematic management of pension assets through diversified investments in global high-quality assets.
Mirae Asset Daewoo operates educational programs to enhance the capabilities of asset management (WM) staff for improving pension customers' returns and diligently manages returns through regular checks on pension asset operations and asset rebalancing.
Each quarter, funds with poor long-term returns are selected and rebalanced into funds suitable for market conditions. For customers holding low-return assets such as cash equivalents, portfolio management guidance is provided. Especially for DC and IRP customers who find face-to-face consultations difficult, non-face-to-face consulting is offered through the Pension Asset Management Center to increase satisfaction with asset management.
Additionally, Mirae Asset Daewoo provides diverse and beneficial content on its official YouTube channel, Smart Money, through segments like ‘Pension Academy’ and ‘Tell Me! Pension Master’ to promote a culture of pension investment. This effort focuses on helping customers accurately understand pensions and raising interest in asset management by presenting asset management methods and tax-saving strategies.
Kim Ki-young, Head of the Pension Solutions Division at Mirae Asset Daewoo, stated, “In the era of zero interest rates in long-term asset management, the proportion of principal-guaranteed products like deposits in pension accounts is decreasing, while the share of investment products such as funds, Exchange-Traded Funds (ETFs), and REITs is increasing. Since pensions should be approached from a long-term perspective, continuous attention to asset management and diversified investment using global high-quality assets are necessary to prepare for a prosperous and stable retirement.”
As of the end of September, Mirae Asset Daewoo’s pension assets (retirement and personal pensions) reached 15.5 trillion KRW, showing a sharp increase this year. In particular, it maintains the industry’s top position in individual pensions with 4 trillion KRW in DC, 2.2 trillion KRW in IRP, and 4 trillion KRW in personal pensions.
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