The exchange traded fund market in South Korea is soon expected to expand in size along with the government’s move to ease regulations regarding actively managed ETFs, a report showed on May 31. As the Korea Exchange has allowed the listing of active ETFs since August, eight new related products were launched on the nation’s main bourse Kospi on Tuesday. Previously, only bond ETFs could be listed on .
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Mirae Asset Global Investments Co. is set to launch a 1 trillion won ($900 million) blind pool fund to invest in US logistics facilities, into which the South Korean investment firm s sister companies will inject 500 billion won.
Mirae Asset has recently signed a memorandum of understanding with Korean pension and savings funds to raise the other half of the fund, according to a report from the Maeil Business Newspaper. Mirae confirmed the report on Apr. 29.
The fund, dubbed Mirae Asset Maps Global II, will target warehouses in the west and east coasts of the US. It has already snapped up logistics facilities in five cities, including Boston, Washington DC and San Francisco, for 500 billion-600 billion won.
By Anna J. Park
Mirae Asset s Independence Equity Fund, Korea s first open-end mutual equity fund launched in February 2001, has posted a cumulative investment return of 1,341 percent as of this week. An open-end mutual fund is a diversified portfolio of money pooled from investors that can issue an unlimited number of shares.
According to financial information portal, FnGuide, the Independence Equity Fund s rate of return was the highest among all mutual funds in Korea with assets under management (AUM) totaling more than 10 billion won ($8.9 million) since its inception. The AUM of the fund once reached nearly two trillion won in early 2008, when the products enjoyed massive popularity.
Mirae Asset s Korean New Deal-themed ETFs top W700b in NAV |
Mirae Asset Group headquarters in Seoul (Mirae Asset Group)
Mirae Asset Global Investments said Friday its five exchange-traded funds investing in stocks dedicated to batteries, biotechnology, internet and gaming sectors have topped 700 billion won ($642 million) in their combined net asset value as of Thursday, two months after their listing.
The ETFs are its signature Tiger suite of products Tiger KRX BBIG K-New Deal ETF, Tiger KRX Bio K-New Deal ETF, Tiger KRX Secondary Battery K-New Deal ETF, Tiger KRX Internet K-New Deal ETF and Tiger KRX Game K-New Deal ETF tracking top-notch stocks of sectors that are expected to become beneficiaries of the nation’s Korean New Deal initiative, the company said.