Mirae Asset Securities announced on the 10th that it will launch a new equity-linked securities (ELS) product that can serve as an alternative to direct overseas stock investment.
The new structure, called 'Jump-up ELS,' is a 3-month maturity product, making it easier to rotate funds compared to the typical 3-year maturity ELS. If the maturity evaluation price of all underlying assets is above a certain level (95% or 100% of the initial reference price, varying by product) on the maturity evaluation date, the agreed-upon return rate is paid (Jump). If the lowest-performing underlying asset’s increase rate exceeds the agreed return rate, all the increased returns are paid out (Up). This design allows investors to expect returns from the rise of the underlying assets. (Maximum loss rate if conditions are not met: -100%)
The newly launched 'Mirae Asset Securities ELS Series 35875 (Grade 1, Very High Risk)' uses Tesla and Nvidia as underlying assets. If the maturity evaluation price of all underlying assets is at least 95% of the initial reference price, a pre-tax return of 15% on the principal (pre-tax, individual, annualized return of approximately 60%) is paid. If the maturity evaluation price of the lowest-performing underlying asset exceeds 115% of the initial reference price, the full increase in that asset’s return is paid. If these return payment conditions are not met and any underlying asset falls below 70% of its initial reference price (based on closing price) at any time before the maturity evaluation date, the asset with the largest decline is delivered in kind, applying its loss rate. This feature provides an effect similar to directly investing in overseas stocks. If the return payment conditions are not met and the asset is delivered in kind, the principal loss can be up to 100%.
If none of the underlying assets fall below 70% of their initial reference price before the maturity evaluation date, the principal is paid 100% at maturity even if the return payment conditions are not met.
In addition, Mirae Asset Securities will launch a total of three Jump-up ELS products, including one with a return payment condition at 100% of the initial reference price and another that allows investment in US dollars.
A representative from Mirae Asset Securities said, "In a market environment with increasing uncertainty, the Jump-up ELS has a short maturity of 3 months and is designed not to limit the maximum return for customers if conditions are met. It can be an alternative product for customers who directly invest in overseas stocks."
The newly launched Jump-up ELS products can be subscribed to from the 10th to 5 p.m. on the 19th for customers not subject to the cooling-off system, and until the 14th for customers subject to the cooling-off system, at Mirae Asset Securities branches nationwide, the website, Mobile Trading System (MTS), and Home Trading System (HTS).
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