Mirae Asset Global Investments (Hong Kong) has received regulatory approval from the Securities & Futures Commission to offer its first retail mutual fund in Hong Kong. The Mirae Asset Global Discovery Fund, which was incorporated in Luxembourg in April 2008 as a Sicav open-end fund, will be available to retail investors in Hong Kong around late-July.
The fund is a collective investment scheme that allows investors to combine their investments into a shared pool with other investors to create a portfolio of assets. Mirae Asset is the principal investment manager and global distributor for these funds.
The fund operates under an umbrella fund structure enabling investors to choose between one or more investment objectives by investing in one or more sub-funds. Investors can choose any number of sub-funds available to suit their specific risk and return expectations as well as their diversification needs. All sub-funds are managed with the same investment philosophy and by the same management team of the existing successful Korea-domiciled funds.
The objective of the fund is to provide a vehicle for investors to invest their capital in the main stock markets of the world. Investors can switch their investments between the sub-funds. In selecting the stocks to invest in, the fund manager will carry out bottom-up analysis, with an emphasis on individual stocks and their intrinsic values. The bottom-up approach is also supplemented by top-down analysis during the stock selection process.
The fund has different sub-funds that invest mainly in equities and equity-related securities, each with a different risk profile. Exactly which sub-funds will be available in Hong Kong will be known later this month.
Each sub-fund features a separate portfolio of holdings aligned with its investment objective. The company offers several different classes of shares per sub-fund, each of which is further denominated into separate currencies.
The sub-funds are: the Mirae Asset Asia Pacific Equity Fund (focuses on Asia-Pacific listed equities outside of Japan); Mirae Asset Asia Pacific Consumer Equity Fund (focuses on consumer-related stocks, such as healthcare, from across the Asia Pacific ex-Japan region); Mirae Asset Asia Pacific Infrastructure Equity Fund (focuses mainly on listed infrastructure companies); Mirae Asset China Sector Leader Equity Fund (which seeks to invest in 30 to 40 stocks listed in Hong Kong and China, including H-shares, red-chips and B-shares); and the Mirae Asset Korea Equity Fund (which invests mainly in Korea shares).
Mirae Asset is the largest asset management company in Korea, making up around a third of the domestic equity fund market. It introduced the very first mutual fund to Korean retail investors in 1998 and has since played a pivotal role in the growth of the fund management industry in the country. It focuses on emerging markets, particularly in the Asia-Pacific region.