[Asia Economy Reporter Hwang Junho] Declaring itself a 'game changer,' KB Asset Management, which lowered its ETF management fees to the industry's lowest level this month, has attracted 85.6 billion KRW in just 10 trading days.
According to fund rating agency Zeroin on the 18th, the total net assets of KB Asset Management's KBSTAR200 ETF were recorded at 1.1279 trillion KRW as of the 16th. This is an increase of 85.6 billion KRW compared to the 1st of this month. This influx of funds occurred over 10 trading days, excluding the Lunar New Year holiday and weekends. Compared to other asset management companies' products tracking the KOSPI 200, products with net asset sizes similar to KBSTAR200 showed net asset increases in the 30 billion KRW range during the same period.
KB Asset Management is credited with significantly lowering the management fee to an annual rate of 0.001%. Among similar products tracking the KOSPI 200 index, having particularly low management fees means potentially better returns than other products. Especially for institutional investors who invest long-term, the difference in fees cannot be ignored. The total fee for KBSTAR200 is 0.017%, the lowest in the industry.
KB Asset Management's KBSTARTR (Total Return) product, which also lowered fees to the industry's lowest level, attracted 88.9 billion KRW in funds this month. This product also reduced management fees, resulting in a total fee of 0.012%, the industry's lowest. The annual total fee for KBSTAR US Nasdaq 100 ETF, which tracks the US Nasdaq, is 0.021%, and its net assets increased by 8 billion KRW over 10 trading days.
KB Asset Management stated, "It is still early to gauge the effect of fee reductions as only 10 days have passed," but added, "We plan to lower fees for other ETFs in the future." In the domestic ETF market, Mirae Asset Management and Samsung Asset Management account for 77% of the market. KB Asset Management holds about 6%.
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