Mirae Asset Rational AI Global Momentum Fund
Executing a Dynamic Asset Allocation Strategy
Buying Assets in Upward Trends, Selling Assets in Downward Trends
Mirae Asset Global Investments' ‘Mirae Asset Rational AI Global Momentum Fund’ is achieving excellent performance by pursuing stable long-term value growth through an asset allocation strategy utilizing artificial intelligence (AI) algorithms.
This product invests in various global multi-asset ETFs based on a momentum strategy. The AI collects market data daily and executes a dynamic asset allocation strategy by buying assets in an upward trend and selling assets in a downward trend. Through this, it adjusts the proportions of risk assets and safe assets according to market conditions to seek stable returns.
Considering market conditions and correlations between master funds, the investment ratio is adjusted to allocate more than 70% to the ‘Mirae Asset AI Global Momentum Mixed Asset Master Fund’ and less than 30% to the ‘Mirae Asset MSCI AC WORLD Index Master Fund.’
The Mirae Asset AI Global Momentum Mixed Asset Master Fund forms its investment universe mainly with domestic and international ETFs investing in assets such as stocks, bonds, commodities, and real estate. The final portfolio is constructed by considering momentum analysis and risk through AI algorithms, and foreign currency assets are hedged against currency risk.
Established in February 2020, this fund recorded a return of 40.22% since inception as of the end of March. When annualized, the return is 6.9%. Even in 2022, a year marked by high volatility due to global inflation, the fund performed well, posting a return of -6.9% compared to the typical benchmark for global asset allocation funds, the global stock-bond 60/40 portfolio (MSCI AC World 60% + Citi WGBI (USD) 40%), which recorded -18.6%.
Lee Changheon, head of operations at Mirae Asset Global Investments, explained, "During 2022, the AI model successfully executed an asset allocation strategy by increasing the weights of commodities, gold, and short-term bonds, while reducing the weights of stocks and medium- to long-term bonds."
Since its inception, the fund has also demonstrated excellent risk-adjusted returns. The annualized return of 6.9% exceeds the annualized return of 3.9% for the global stock-bond 60/40 portfolio. The annualized volatility was 8.2%, lower than the benchmark portfolio’s 11.2%.
Mirae Asset Global Investments currently manages five AI-based funds, with net assets totaling 235 billion KRW, the largest scale among domestic asset management companies. Mirae Asset leads the industry by offering investors a variety of AI-based financial products and services, including not only public funds but also ETFs and advisory services.
Mirae Asset plans to launch an ‘AI Robo-Advisor Retirement Pension Discretionary Investment Service’ as early as April this year, in cooperation with various retirement pension providers. This service aims to provide personalized retirement pension management solutions tailored to individual investors.
A representative from Mirae Asset Global Investments stated, "The combination of AI technology and extensive management experience is presenting investors with a new investment paradigm," adding, "We will continue to lead the market with innovative products that integrate finance and technology."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
