[2024 Capital Investment Target] Mirae Asset Global Investments Builds AI Financial Services

Best Asset Management Company

Mirae Asset Global Investments was selected as the Best Asset Manager at the '2024 Asia Capital Investment Awards.'

Mirae Asset Global Investments is a global asset management company that stands out in the rapidly growing global Exchange-Traded Fund (ETF) market. As of the end of September this year, the total net assets under management of ETFs by Mirae Asset Global Investments reached 181 trillion KRW.

Domestically, it not only leads the market through 'TIGER ETFs' but also provides diverse investment opportunities by developing innovative growth-oriented ETFs. Recently, it introduced the Covered Call 2.0 ETF, addressing the drawbacks of the traditional covered call investment strategy. A covered call strategy involves buying the underlying asset while simultaneously selling call options on that asset. While this strategy cushions losses by the amount of the option premium when the stock price falls, it limits the upside potential during price increases.

To overcome these limitations, Mirae Asset Global Investments launched the 'Target Covered Call' ETF for the first time in Korea. It introduced various covered call strategy ETFs such as TIGER U.S. Dividend Dow Jones Target Covered Call No.1 ETF and TIGER U.S. Dividend Dow Jones Target Covered Call No.2 ETF. Unlike typical covered call ETFs that sell 100% of call options, this strategy adjusts the proportion of options sold to maintain a target distribution rate. Investors can expect dividend yields that add a certain percentage to the underlying index's annual average dividend yield. The extent of stock price appreciation and dividend income varies depending on the proportion of options sold.

Choi Chang-hoon · Lee Jun-yong, CEOs of Mirae Asset Global Investments

Mirae Asset Global Investments is actively responding to lead the future financial market. It has identified robo-advisors (RA) and artificial intelligence (AI) as the next-generation growth engines for the asset management industry and has been preparing for several years. In August last year, it acquired Stockspot, an Australian robo-advisor specialized asset management firm. In January this year, it filed a trademark application for Wealthspot, an AI-related corporation, with the United States Patent and Trademark Office. Wealthspot is expected to coordinate AI financial strategies across overseas subsidiaries and lead innovation technology synergies within the group.

Mirae Asset Global Investments also offers various AI services in its domestic business area. It sees robo-advisors as a viable alternative in the retirement pension market, which is worth 400 trillion KRW. A total of 14 AI algorithms, including those dedicated to retirement pension asset allocation and thematic strategies, passed the testbed evaluation by Koscom in June. In July, KB Kookmin Bank highly evaluated the profitability and technology of RA investments and selected Mirae Asset Global Investments as a partner to target the retirement pension market. As a result, Mirae Asset Global Investments is expected to maintain a superior position in the retirement pension market as well.