Mirae Asset Enters Retirement Pension AI Robo Market

Mirae Asset Global Investments announced on the 3rd that it will participate in the testbed for discretionary management of retirement pensions using robo-advisors. With this participation, Mirae Asset Global Investments will officially enter the retirement pension AI robo market.

Mirae Asset Global Investments developed an algorithm dedicated to retirement pensions and applied for the robo-advisor testbed review at Koscom on the 27th of last month. This follows the announcement by the Ministry of Economy and Finance in July to promote innovative financial services (financial regulatory sandbox) for discretionary management of retirement pensions by robo-advisors as part of the 'Digitalization Strategy for the Service Industry.'

[Image source=Mirae Asset Global Investments]

A robo-advisor is a compound word of ‘Robot’ and ‘Advisor,’ referring to an asset management service where AI constructs and manages portfolios reflecting individual investment preferences through algorithms and big data analysis. Currently, robo-advisor service providers in the retirement pension market can only suggest customized portfolios, but if they qualify as innovative financial services, they can also provide discretionary services such as buying, selling, and rebalancing.

The algorithm undergoing the testbed review is designed based on Mirae Asset Global Investments’ AI fund management experience and expertise. It consists of a total of 14 algorithms categorized into strategies such as asset allocation, income type, and thematic type, considering each investor’s preferences and needs. The testbed review is expected to be completed by June 2024. Afterward, algorithms that pass the review will undergo a screening process by the Financial Services Commission, and a pilot introduction of discretionary management services for retirement pension robo-advisors is planned.

Mirae Asset Global Investments is a leader in the pension market and also possesses solid AI management capabilities. Since the early 2000s, it has built and utilized the Quantitative Portfolio Management System (QPMS) for fund management, and since 2017, it has been managing funds using AI technology, such as the ‘Mirae Asset Reasonable AI Global Momentum’ fund. Additionally, in August, it acquired ‘Stockspot,’ Australia’s leading robo-advisor specialist firm, becoming the first domestic financial group to do so, thereby enhancing its competitiveness in the global AI and robo market.

Moreover, Mirae Asset Global Investments plans to provide differentiated services in the AI and robo market through collaboration with group affiliates such as Mirae Asset Securities. Based on generative AI and data classification technologies, from direct indexing to WRAP advisory services, it aims to advance asset management by constructing portfolios tailored to preferences and inclinations.

Lee Hyun-kyung, Head of AI Financial Engineering and Management Division at Mirae Asset Global Investments, said, “Starting with participation in this testbed, we will officially enter the retirement pension AI robo market and offer various options to pension investors. We will strive to provide retirement pension investment solutions that combine Mirae Asset’s pension asset management capabilities with investment strategies and know-how accumulated through the advancement of AI-based research and management organizations.”