Mirae Asset Securities announced on May 26 that it will begin a full-scale expansion of its lineup of withdrawal-type products, starting with the launch of the 'Mirae Asset Investment Steady Retirement Fund (Bond Mixed - Fund of Funds Type)' (hereinafter referred to as the Steady Retirement Fund).
The Steady Retirement Fund, which began sales on May 19, is a product exclusively designed for the pension withdrawal phase and was launched by Mirae Asset Global Investments. The pension withdrawal phase refers to the period after economic retirement when individuals begin drawing down their pension and their assets start to decrease. During this period, it is important to secure a sustainable source of income through stable asset management. As the number of retirees entering the pension withdrawal phase increases, there is growing interest in pension products that provide a steady monthly cash flow.
To meet this demand, the Steady Retirement Fund has adopted a fixed distribution method, designed to pay a set amount of distributions every month. Distributions are primarily paid from the fund's earnings, and if necessary, a portion of the principal may be used. Depending on the number of fund units held at the time of purchase, a distribution of approximately 5% per year (KRW 4.17 per 1,000 units per month) is paid monthly. However, if the number of units held changes due to the fund's net asset value at the time of investment, the annual payout rate may fluctuate.
The fund's management strategy focuses on withdrawal stability and predictability. The portfolio is primarily composed of global exchange-traded funds (ETFs), with a 40 to 60 allocation between risk assets and safe assets. The proportion of each asset class may be adjusted depending on market conditions. The fund plans to establish a long-term distribution payment base by utilizing income generated from various asset classes, such as interest and dividends from cash-flow-generating assets.
Jung Hyo-Young, Head of the Retirement Consulting Division at Mirae Asset Securities, stated, "Even during the withdrawal phase, it is necessary to manage assets in a way that preserves their real value, taking inflation into account," and added, "The Steady Retirement Fund continues the investment strategy of the accumulation phase but is designed with management methods suitable for the withdrawal phase, making it a practical alternative for clients concerned about managing their assets after retirement."
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