SEOUL, KOREA, October 28, 2022 /– Fund performance in the first half of the year was good… Fund management fee + investment return on unique assets ‘rising’. Macqwerty Asset Management is producing good results by proving stable asset management despite the global stock market and real estate recession.
In the first half of 2022 alone, it already earned more than half of the performance of the investment group No. 1 hybrid fund last year. As a result, expectations for overall performance this year are also rising.
According to Macqwerty Fund Collective No. 1 on October 15, Macqwerty earned $7.7 million in fund collective operating revenue, $380,000 in sales and distribution revenue, and $320,000 in net profit in the first half of 2022, respectively.
While annual earnings growth continues, 2022 also exceeded half of last year’s earnings for the first time in six months. The stable income of Macquarty No. 1 Fund is the most representative fund among the funds established and launched by Macquarty No. 1, and it is evaluated as a positive signal that Macquarty’s stable management strategy is working in the global market.
The funds and performance of Macqwerty’s overall Fund Collective management are also noteworthy. Looking at the detailed factors, the management fee for the fund collective investment scheme is $970,000, which accounts for most of the operating income of Macquarty’s overall fund collective management. Currently, Macquarie’s assets under management (AUM) are approximately KRW 420.4 billion (fund group assets).
At the beginning of 2021, assets under management were 100 billion won, but in one year, it increased to 4204 billion won. It was formed by collecting 320 billion won of funds in the form of collective management of customer funds. Also, the pre-purchase of a 100 billion won fund seems to be the result of a stable strategy.
The increase in earnings improvement other than those generated from assets under management is mainly attributable to capital gains generated in the course of overseas securities trading. In fact, when Macquarty launched the fund in June of last year, the dollar exchange rate was 1,131 won. On the other hand, the present value of the dollar after purchasing the fund is around 1,400 won.
Through this, the value of securities issued for shareholders and stocks in the global stock market that were previously purchased increased by approximately 30% due to the strengthening of the dollar. This is the realized profit reflected in the sales in the first half of 2022 and recorded in the actual book.
In addition, ‘Zarta Real Estate Fund Collective Management A-1, A-2’, which was being managed, sold its assets and entered maturity. In October 2021, Indonesia’s first stock market and real estate were established, with good results within one year of establishment.
It is known that 80% of the assets sold this time are Indonesian securities and 20% of ETF derivatives. During the same period, the IDX representative stock index rose about 8% from 6,590 points in October 2021 to 7,048 points on October 28, 2022.
In many respects, given earnings trends, Macqwerty’s overall earnings for 2022 are expected to outperform the previous year. In particular, considering that additional income and expenses such as CFD dividend payments in the year-end global stock market can generate additional income by diversifying Macquarie’s portfolio, there is great room for improvement in the second half of 2022.
Meanwhile, the industry is also paying attention to ESG-responsible management implemented by collective investment schemes. At the end of 2021, ESG investments in the industry accounted for only about 10% of total investments. Macqwerty announced on the 20th of last month that 30% of its asset allocation will be invested in the corporate stock market where ESG management is implemented. This is well above the industry average.
Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No The Finboard journalist was involved in the writing and production of this article.