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By Jhoo Dong-chan
Mirae Asset Global Investments is attracting more retail investors with the nation's first public offering fund that invests in private equity funds (PEFs).
A PEF is a hedge fund pursuing absolute returns by utilizing various investment plans, including investing in equity shares and derivatives. Due to its high barrier requiring at least 100 million won ($89,676) to join, however, the fund has been the monopoly of the rich and institutional investors.
In a bid to meet average investors' longtime wish for investing in PEFs, Mirae Asset Global Investments introduced the Mirae Asset Smart Hedge Fund Selection Fund in September lowering its minimum contract amount to 5 million won to make it easy for average investors to access.
The fund has since enjoyed a 10.72 percent return rate, a stark contrast to an average return rate in the benchmark KOSPI of -6.19 percent.
Sorting out stable and high-return PEFs among at least one-year-old domestic hedge funds with more than 30 billion won in net capital, Mirae Asset Global Investments said it applies the firm's risk management system to maximize the fund's return while hedging against possible contingencies.
"Mirae Asset Global monitors possible risks around the clock. If the system perceives risk factors, we rebalance the fund's investment portfolio," a Mirae Asset Global Investments official said.
According to the firm's March report, the Mirae Asset Smart Q Total Return PEF accounted for 13.9 percent of the total Mirae Asset Smart Hedge Fund Selection Fund investment. Introduced in late 2011, the Mirae Asset Smart Q Total Return PEF has since posted a 28.45 percent cumulative return rate.
So far, the Mirae Asset Smart Hedge Fund Selection Fund has collected more than 110 billion won attracting average investors who are interested in investing in PEFs.
Mirae Asset Global Investments is the nation's largest asset management firm that operates investment networks in 12 countries, offering an optimized platform for investing in global companies.
According to the Korea Financial Investment Association, Mirae Asset Global Investments is operating nearly 30 percent of the nation's total equity funds investing overseas. Five out of the nation's top 10 equity funds investing abroad are also part of Mirae Asset Global Investments.
