Asset Managers Reap 3.7 Billion Won in Fees from Single-Stock Leverage Funds Amid Retail Investor Losses

Asset management companies have reportedly raked in nearly 3.7 billion won in fee revenue from single-stock leverage products over a two-month period.

According to data submitted by the Financial Supervisory Service to the National Assembly's Political Affairs Committee, the tentative management fees for 16 single-stock leverage ETFs totaled 3.665 billion won from May 27 to June 28.

Management fees are commissions deducted from investors' assets in exchange for managing the ETFs.

These fees are levied in proportion to the size of the assets, regardless of whether investors incur losses.

Among the firms, Samsung Asset Management generated the highest revenue.

Samsung Asset Management raked in 3.029 billion won in management fees from just two products: KODEX SK Hynix Leverage and KODEX Samsung Electronics Leverage.

Samsung Asset Management set the management fee rate for both products at 0.0027 per year (0.27%), which is higher than the 0.0007 to 0.0020 (0.07% to 0.20%) charged by other asset managers.

Mirae Asset Global Investments followed next.

The total management fees for the two products managed by Mirae Asset Global Investments recorded 485 million won.

Hanwha Asset Management and Shinhan Asset Management collected 49 million won and 35 million won in management fees, respectively. The two companies operate the industry's only 2x inverse ETFs for Samsung Electronics and SK Hynix.

As single-stock leverage products were pointed out as a major culprit behind mounting retail investor losses during the sharp downturn of the KOSPI index, financial authorities implemented regulations to curb speculative overheating in single-stock leverage ETF investments.

The minimum deposit requirement for investors was raised to 30 million won starting June 30, and the daily average trading value of related products has since plummeted to one-tenth of the level seen before the regulations took effect.

(Reported by Jung Da-eun, Video by Kim Min-ji, Design by Yang Hye-min, Produced by SBS Digital News)
※ Please note: This article was translated by AI and may contain errors.