Mirae Hoards Cash to Buy Emerging Debt When Europe Crisis Eases

Mirae Asset Global Investments, South Korea’s biggest mutual fund manager, is increasing its cash holdings, preparing to buy fixed-income assets in emerging markets after Europe’s debt crisis eases.

Heo Joon Hyuk, who manages 1.4 trillion won ($1.2 billion) as the New York-based head of global fixed-income investment at Mirae Asset, said in a phone interview yesterday that his debt funds would boost holdings of cash to 25 percent from 20 percent. Developing-nation debt has slumped because global funds sought to accumulate cash and not because of any change in the countries’ economic fundamentals or growth outlooks, Heo said.