Mirae Asset Management's US Dividend Premium Fund Surpasses 100 Billion KRW in Net Assets

Mirae Asset Global Investments announced on the 25th that the net assets of the ‘Mirae Asset US Dividend Premium Fund,’ which invests in high-quality US dividend stocks and seeks additional returns through a covered call strategy, have surpassed 100 billion KRW.

According to Korea Fund Partners, as of the closing price on the 24th, the net assets of the ‘Mirae Asset US Dividend Premium Securities Investment Trust (Equity)’ stand at 118.6 billion KRW. This marks a significant increase in just over six months compared to the net assets of 43.8 billion KRW at the end of 2023.

The Mirae Asset US Dividend Premium Fund is a public offering fund that invests in high-quality US dividend stocks. It selects and invests in US companies that demonstrate stable long-term growth and consistent dividend payments, based on factors such as dividend growth potential, abundant free cash flow, and the possibility of share repurchases. Major investment stocks include Microsoft, Apple, and Nvidia.

Additionally, by utilizing a covered call strategy, the Mirae Asset US Dividend Premium Fund aims to benefit from both stock price appreciation and option premium income. A covered call is a strategy where call options on the underlying asset are sold simultaneously with the purchase of the asset. While selling covered calls generates income (premiums), it also limits the upside profit if the stock price rises at the option’s expiration. This fund flexibly sells call options according to market conditions, targeting an annual option premium income of 0-5%, thereby pursuing both stock price gains and option premium income.

The Mirae Asset US Dividend Premium Fund offers two types: Unhedged (UH) and Hedged (H), allowing investors to choose based on their investment preferences. Investors expecting a rise in the KRW-USD exchange rate due to a strong US dollar (weak Korean won) may opt for the Unhedged type, while those anticipating a strong Korean won (weak US dollar) may choose the Hedged type.

So Sujin, Executive Director of WM Pension Marketing at Mirae Asset Global Investments, stated, “The Mirae Asset US Dividend Premium Fund combines high-quality US dividend stocks with a covered call strategy to reduce volatility and pursue steady income through dividends and option premiums. It is suitable for investors who want to invest long-term in the US market through personal pensions and retirement pensions.”