Mirae Asset Global Investments said its covered-call products have surpassed 10 trillion won ($) in net assets, the first such milestone in the industry, as demand grows for income-focused strategies during periods of heightened market volatility.
The firm said Monday that as of April 27, net assets in its covered-call series totaled 10.4484 trillion won, including 3.4416 trillion won in public mutual funds and 7.0068 trillion won in exchange-traded funds. The combined covered-call assets across mutual funds and ETFs are among the largest in South Korea, it said.
A covered-call strategy sells call options on stocks already held to collect option premiums. The approach aims to generate steadier cash flow by combining dividends with option income, and premiums can rise when volatility increases, helping drive recent investor interest.
Mirae Asset Global Investments said it introduced covered-call strategies in 2012 and has built a long operating track record. Its flagship public fund, the Mirae Asset Dividend Covered Call Active, has posted cumulative returns of more than 357% since inception.
Growth has been led recently by ETFs. The TIGER Dividend Covered Call Active ETF, listed in 2023, quickly surpassed 1 trillion won in net assets after listing and drew retail money with a monthly distribution structure. The addition of the TIGER Semiconductor TOP10 Covered Call Active ETF has broadened the strategy beyond dividend-focused products toward combining covered calls with investments in growth industries.
The firm attributed the expansion to running both mutual funds and ETFs: mutual funds provide stability based on long-term performance, while ETFs broaden access through easier trading and liquidity. Market conditions have also supported the strategy, it said, as volatility tied to interest rates and geopolitical factors has reinforced investor preference for steady cash flow over directional bets. Demand for distribution-based investing has also been rising, particularly in pension accounts.
Jeong Ui-hyeon, head of ETF management at Mirae Asset Global Investments, said rapid asset growth from the early days of listing reflected both expectations for semiconductor growth and demand for monthly payouts. He said investor interest has also been driven by what he described as South Korea’s first covered-call structure using single-stock options, which can secure distribution resources differentiated from index-based approaches.
Jeong said the semiconductor covered-call ETF plans to begin its first distribution payment in mid-May, adding that the strategy aims to increase participation in upside during an improving semiconductor cycle while providing steadier cash flow when volatility rises.
* This article has been translated by AI.
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