Mirae Asset fund posts high yield from high-tech firms

The Mirae Asset Global Growth Fund posted high yields by investing in companies related to the Fourth Industrial Revolution, Mirae Asset Global Investments said Monday.

According to Zeroin, a fund assessment firm, the Mirae Asset fund chalked up 25.77 percent of return in a year as of May 24 and 16.61 percent this year alone. Its accumulated yield after its launch on April 15, 2014, stands at 42.54 percent.

The asset management firm recommended the fund, which it says is designed to earn handsome profits despite the current financial environment plagued by uncertainty and low economic growth.

Mirae Asset invested the fund in innovative firms that are expected to show long-term growth along with social changes. It considered such factors as the advance of technologies, expanded middle-income households in emerging countries, aging society and the Fourth Industrial Revolution.

The Seoul-based outfit said the fund runs under three investment strategies. First, it focuses on innovative firms around the world, as the firm believes innovative compa- nies’ value eventually goes up.

Second, the fund uses both top-down and bottom-up approaches to analyze such companies. Mirae Asset said it monitors more than 15,000 investment targets and sorts out the best 1 percent through quantitative analysis.

And then, Mirae Asset sets up a portfolio comprised of 20 to 30 companies, which the company regards as the optimal number of investment targets for best returns.

The fund’s January report showed 70.2 percent of companies that the fund invested in are in the United States, followed by China with 12.1 percent and Europe with 9.7 percent. By sectors, info-tech companies accounted for 57.6 percent, followed by consumer goods makers with 25.2 percent and financial firms with 4.53 percent.

Mirae Asset has earned its credit in running offshore equity funds. The Korea Financial Investment Association said the value of Mirae Asset’s offshore equity funds accounted for 30 percent of Korean firms’ overseas equity funds.

“Mirae Asset Global Growth Fund invests in innovative companies which can grow and are impacted less by negative market conditions,” said Mok Dae-kyun, head of Mirae Asset’s global management division.