Mirae Asset Global Investments launched a product called "Mirae Asset Investment and Steady Pension Fund," which offers investment solutions for retirees withdrawing from pension accounts to sustain their living. This is the first time a fund targeting retirees has been introduced by the asset management company.
Mirae Asset Global Investments explained the background for launching the product, stating that it is time to change perspectives on pension investments. The company noted, "Until now, the domestic pension fund market has focused on asset 'accumulation' based on the profitability of pension funds such as target date funds (TDF), and now we need to consider stable pension asset 'withdrawals' as the retirement of baby boomers approaches."
This fund pays a fixed monthly distribution (fixed payment). It has a structure that pays a distribution corresponding to 4.17 won for every 1,000 shares held at the time of investment. If calculated with a principal of 100 million won and a purchase price of 1,000 won, a monthly distribution of 417,000 won can be received. The fixed monthly distribution rate is 0.417%, which annualizes to 5%. The source of the distributions will primarily come from the fund's operating revenue, utilizing some of the principal if necessary.
Mirae Asset noted that the fund's stability is secured through global asset allocation. It will invest 40% in risky assets such as global stocks and alternative assets, and 60% in safe assets such as global bonds. Depending on market conditions, the allocation to risky assets can be adjusted up to 50%, and to safe assets up to 80%.
Son Su-jin, head of the ETF pension marketing division at Mirae Asset Global Investments, said, "During the accumulation phase, it's important to have a strategy that enhances revenue by accumulating earned income, while during the withdrawal phase, it's crucial to safeguard the principal to ensure a longer duration of pension receipts." She added, "I expect the Mirae Asset Investment and Steady Pension Fund to be a stable withdrawal solution product leading the pension withdrawal market in our country."
The Mirae Asset Investment and Steady Pension Fund is available for subscription through Mirae Asset Securities both online and offline. It can be subscribed to through personal pension and retirement pension accounts, as well as general accounts.