Surge in Pension Asset Utilization... Selecting Asset Managers to Support Wise Investments

2022 Asia Fund Awards - Jury Review
Jung Soonseop, Jury Chair (Professor, Seoul National University School of Law)

[Asia Economy Reporter Junho Hwang] Interest in indirect investment products has increased as the economy moves toward normalization after COVID-19. Additionally, the default option (pre-designated management system), which can enhance the utilization of pension assets, is scheduled to be implemented from the first half of this year. The 13th Asia Economy ‘Asia Fund Awards’ this year focused on selecting the best fund products in Korea and recognizing and awarding the asset management companies that operate them in line with these trends.

The Target Date Fund (TDF) category, which will be a representative product of the default option, was divided into three sections: equity mixed type, bond mixed type, and growth strategy type for awards. It is expected to contribute to helping investors make wise investments ahead of the introduction of the default option.

At this Fund Awards, Mirae Asset Global Investments was selected as the grand prize winner, given its 27% market share in the overall pension fund market and its status as a leading pension-specialized asset manager in Korea, attracting investors’ attention.

Also, in the TDF product category, as of the closing price at the end of January, Mirae Asset manages KRW 510.4 billion in asset allocation TDFs and KRW 3.0036 trillion in strategic allocation TDFs, with total assets under custody reaching KRW 3.5 trillion, making it the industry’s largest and most efficiently managed asset manager. Therefore, it was chosen as the Best Manager for TDF (Bond Mixed Type).

KB Asset Management was selected as the Best Manager for TDF (Equity Mixed Type) because its KB On Gukmin TDF 2055 recorded a 23% return since the beginning of the year, ranking first among all TDFs.

Shinhan Asset Management was chosen as the Best Manager for TDF (Growth Strategy Type) for completing the internalization of TDF management capabilities by establishing the Pension Digital Solutions Headquarters and newly recruiting the Global Management Headquarters Chief and Investment Strategy Center Chief, and for launching TDF products tailored to the MZ generation.

In addition to TDF, the awards also included the Best Manager in the Exchange-Traded Fund (ETF) category, which gained tremendous popularity last year. Korea Investment Management was selected as the Best Manager for launching the KINDEX US Nasdaq 100 ETF, which tracks the US Nasdaq 100 index and has grown to become the second largest in Korea.

In the overseas fund category, the Best Fund award went to Samsung Asset Management’s ‘Samsung Vietnam Fund.’ This fund recorded an 83.7% annual return in 2021 (based on FN Guide, excluding leverage and inverse funds), ranking first among all overseas funds and gaining recognition as a representative overseas fund.

In the EMP fund category, the Best Fund award was given to Kiwoom Investment Asset Management’s ‘Kiwoom Global Bullio Multi-Asset EMP Fund.’ It received high marks for being the first in Korea to use an all-weather strategy, maintaining a portfolio capable of generating returns in any market condition and delivering stable profits.

In the Best Distributor category, ‘Korea Investment & Securities’ was recognized for fully compensating investment amounts due to incomplete fund sales; ‘Samsung Securities’ was selected for providing all-weather customer-centric services from the sales process to post-subscription performance reporting; and ‘KB Securities’ was chosen for establishing a company-wide consumer protection policy led by a Chief Consumer Officer (CCO) directly under the CEO and a Financial Consumer Protection Committee chaired by the CEO.