About 10 months after their launch, the comprehensive investment accounts (IMA) from Korea Investment & Securities and Mirae Asset Securities have shown mixed results. Since their inception, Mirae Asset has outperformed in cumulative returns, but in the third quarter, Korea Investment maintained profitability while Mirae Asset reported losses. The quarterly performance was influenced by how much the evaluation losses of included assets were offset by interest income and dividends.
According to the financial investment industry on October 20, as of the end of last month, the cumulative return of 'Mirae Asset IMA No. 1' was recorded at 9.15%, which is 6.12 percentage points higher than 'Korea Investment IMA S1' at 3.03%. Both Korea Investment and Mirae Asset were designated as IMA operators in November last year and launched their first products in December.
However, the gap in returns has narrowed in the third quarter. The cumulative return of Mirae Asset No. 1 fell from 11.88% at the end of June to 9.15% at the end of September, a decrease of 2.73 percentage points. During the same period, Korea Investment S1 increased from 2.43% to 3.03%, a rise of 0.60 percentage points. While Mirae Asset No. 1 returned some of the profits accumulated in the first half, Korea Investment S1 managed to generate additional returns.
Specifically, Korea Investment S1 achieved an operating profit of approximately 6.7 billion won in the third quarter. Although it faced an evaluation loss of about 7.1 billion won from its held income securities, it offset this with interest income of about 8.4 billion won and fund dividends of about 7.6 billion won. The quarterly operating profit decreased from approximately 15.4 billion won in the previous quarter but remained in the black.
In contrast, Mirae Asset No. 1 recorded an operating loss of about 2.73 billion won during the same period. The evaluation loss of approximately 5.26 billion won exceeded the combined amount of interest income of about 980 million won and other income of about 1.54 billion won. Although it generated income from interest and other sources, it was insufficient to cover the decline in the evaluation value of its held assets.
The differences in operational strategies between Korea Investment and Mirae Asset are believed to have contributed to the varying results. Korea Investment S1 focuses on corporate loans and income securities, securing interest income and fund dividends. In contrast, Mirae Asset No. 1 includes convertible bonds (CB) and unlisted stocks alongside interest-bearing assets like bonds and corporate loans, aiming for additional returns. The investment assets linked to the stock market also played a role in the performance variations. The CBs included in Mirae Asset No. 1 are bonds but can be converted into stocks, meaning their value fluctuates based on the stock prices of the respective companies.
However, the differing maturity periods may also be a variable in their operations, as Korea Investment S1 and Mirae Asset No. 1 have maturities of two years and three years, respectively, which could lead to differences in management approaches.
* This article has been translated by AI.
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