Mirae Asset Management's 'Dividend Premium Series' Surpasses 2 Trillion KRW in Net Assets

Mirae Asset Global Investments announced on the 17th that the total net assets of the ‘Dividend Premium Series’ (including ‘Mirae Asset Dividend Premium Fund,’ ‘Mirae Asset US Dividend Premium Fund,’ ‘Mirae Asset Global Dividend Premium Fund,’ and ‘TIGER Dividend Premium Active ETF’), which seeks stable accumulation of option premiums and excess returns using an active covered call strategy, have surpassed 2 trillion KRW (combined public and private funds).

The flagship fund of the Mirae Asset Dividend Premium Series is the ‘Mirae Asset Dividend Premium Fund.’ Since its inception in March 2012, it has recorded stable performance for over 10 years and is a leading public fund in Korea. As of the 14th of this month, its net asset size reached 963.2 billion KRW. This fund invests in domestic stocks with high dividend yields while employing a covered call strategy. It invests in companies with high shareholder return rates, considering not only dividend income but also share buybacks, aiming for steady long-term excess returns.

In particular, the ‘Mirae Asset Dividend Premium Fund’ actively adjusts the proportion of option sales and strike prices according to market conditions. Through this, despite using a covered call strategy, it has achieved superior performance compared to its benchmark index even during market upswings. From March 2020, when the market began to rebound after the sharp decline caused by COVID-19, until now, the cumulative return is 95%, exceeding the benchmark index ‘KOSPI 200 (70%) + MMI (30%)’ return of 64%. The ETF version of the ‘Mirae Asset Dividend Premium Fund,’ the ‘TIGER Dividend Premium Active ETF (472150),’ has also shown rapid growth since its listing in December 2023. As of the closing price on the 14th, its net assets amount to 120.3 billion KRW.

The ‘Mirae Asset US Dividend Premium Fund,’ which invests in US dividend growth stocks, selects its holdings by considering dividend growth potential, abundant free cash flow, and total shareholder return rate including share buybacks. Recently, this fund has shown steady performance amid the rising US stock market, supported by the earnings of companies such as Microsoft, Apple, and Nvidia.

The ‘Mirae Asset Global Dividend Premium Fund’ is a dividend premium fund with approximately 700 billion KRW in net assets that invests in global dividend growth stocks. It includes a global dividend growth portfolio composed of MSCI Standard Index stocks with large market capitalization and ample liquidity by country, based on dividend yield, dividend sustainability, and cash flow stability.

All funds in the Mirae Asset Dividend Premium Series utilize an active covered call strategy. This strategy seeks premium income by selling call options but actively adjusts strike prices and the proportion of option sales according to market conditions. This approach aims to complement the limitations of the covered call strategy, which may cap gains during sharp market rises, while steadily accumulating option premiums and maximizing the advantages of covered calls.

The Dividend Premium Series, which has maintained stable performance over a long period, is gaining attention from pension investors. Mirae Asset Global Investments plans not only to expand the lineup so that pension investors can easily invest through retirement pension and individual pension accounts but also to introduce various products that allocate assets based on the domestic and international Dividend Premium Series.

Hyun Kyung Lee, Head of AI Financial Engineering at Mirae Asset Global Investments, said, “Mirae Asset Global Investments, which has operated covered call funds such as the ‘Mirae Asset Dividend Premium Fund,’ considered the originator of the popular covered call ETFs, for over 10 years, has actively responded to market volatility to complement the limitations of the covered call strategy and strive for stable returns.” She added, “The low volatility and steady performance demonstrated by the Dividend Premium Series can benefit long-term investors and especially pension investors for whom stable returns are paramount.”