Mirae Asset Global Investments announced on the 24th that it has marked the 10th anniversary of being selected as the dedicated management institution for the Housing and Urban Fund by the Ministry of Land, Infrastructure and Transport. Over the past 10 years, Mirae Asset Global Investments has recorded a cumulative return of approximately 39%, demonstrating its management capabilities and competitiveness.
In 2014, the Ministry of Land, Infrastructure and Transport reviewed advanced overseas cases and selected asset management companies and securities firms as dedicated management institutions to strengthen the professionalism and safety of managing surplus funds within the Housing and Urban Fund. Through this, the professionalism, stability, and profitability of national fund asset management were enhanced.
Mirae Asset Global Investments, selected as the first dedicated management institution in July 2014, was consecutively reselected in July 2018 for the second term and July 2022 for the third term, marking 10 years this year. Mirae Asset Global Investments is the only asset management company to have been selected three times consecutively since the initial introduction of the dedicated management system for the Housing and Urban Fund.
Before the introduction of the dedicated management system, the Ministry of Land, Infrastructure and Transport invested the fund mainly in domestic assets such as domestic bonds and domestic stocks through a Fund Wrap method via securities firms. However, after the introduction of the dedicated management system, the asset management system was improved together with the dedicated management institutions, and the investment target groups have been gradually expanded to include overseas stocks, overseas bonds, and alternative investments.
Since Mirae Asset Global Investments was selected as the dedicated management institution, the cumulative return over the past 10 years has been 38.87%. This is more than 10 percentage points higher than the scenario before the introduction of the dedicated management system and represents consistent excess performance compared to the benchmark. Specifically, Mirae Asset Global Investments generated 7 percentage points of excess returns through strategic asset allocation by diversifying investment targets and enhancing the asset allocation of the Housing and Urban Fund, and an additional 3 percentage points of excess returns through active tactical asset allocation such as diversification of investments and strategies.
Based on excellent returns, Mirae Asset Global Investments has also shown outstanding results in the annual performance evaluations conducted every year. Out of 10 evaluations, it recorded excess returns over the benchmark 7 times. Compared to other dedicated management institutions that have been replaced once, Mirae Asset Global Investments demonstrated superior performance 8 times out of 10, recognizing its unique know-how.
Additionally, based on 10 years of fund management know-how, Mirae Asset Global Investments has developed and is utilizing an integrated fund management system dedicated to the Housing and Urban Fund and the OCIO archive homepage. Through this, it integrates management of investment planning, execution, evaluation processes, and risk management, systematically accumulating various information and experiences related to surplus fund asset management, and is evaluated to have secured continuity in fund management.
As the first dedicated management institution in Korea, Mirae Asset Global Investments takes pride in its role and plans to continue striving for the development of the fund and the domestic OCIO industry. Although the environment is challenging due to the recent decrease in surplus fund size, the company intends to contribute to the advancement of asset management and the modernization of operations based on a deep understanding and consideration of the fund.
Lee Jung-min, Head of the Housing and Urban Fund Management Division at Mirae Asset Global Investments, said, “The 10 percentage points of excess returns resulting from the introduction of the dedicated management system correspond to a significant amount of about 1.6 trillion KRW, considering that Mirae Asset Global Investments’ entrusted average management balance is 16 trillion KRW. This contributes to the purpose of managing surplus fund assets as necessary resources to smoothly carry out and support fund projects.”
Meanwhile, the Housing and Urban Fund is a business fund established by the Ministry of Land, Infrastructure and Transport by raising funds through subscription savings and national housing bonds to support housing developers and citizens who wish to purchase or rent houses.
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