"Last Year Asset Management Firms' Net Profit 1.8099 Trillion Won... 13% Increase YoY"

Thanks to the growth of the fund market, the performance of asset management companies also improved last year.

According to the '2024 Asset Management Company Business Performance' announced by the Financial Supervisory Service on the 30th, the net profit of asset management companies reached 1.8099 trillion KRW, an increase of 207.6 billion KRW (13.0%) compared to the previous year.

Operating revenue recorded 5.5513 trillion KRW. This increased by 508 billion KRW (10.1%) compared to 2023 due to growth in fee income. Operating expenses rose by 351.5 billion KRW (10.0%) to 3.8837 trillion KRW, due to increased securities investment losses and other factors.

By company, out of a total of 490 firms, 281 recorded profits, while 209 companies posted losses. Among private asset management companies, 196 out of 411 companies (47.2%) reported losses.

The return on equity (ROE) was 11.6%, up 0.5 percentage points from the previous year.

Fee income amounted to 4.409 trillion KRW, an increase of 490.2 billion KRW (12.5%) compared to the previous year. Among this, fund-related fees were 3.6384 trillion KRW, up 421.4 billion KRW (13.1%). Additionally, discretionary advisory fees increased by 68.8 billion KRW (9.8%) to 770.6 billion KRW.

At the end of last year, the assets under management of 490 asset management companies totaled 1,656.4 trillion KRW. Among these, fund custody assets amounted to 1,042.2 trillion KRW, with public funds at 412.4 trillion KRW and private funds at 629.8 trillion KRW.

Public funds increased by 83.2 trillion KRW compared to the previous year, mainly in bond-type, equity-type, and derivative-type funds. Bond-type funds saw a 47.4% increase in custody assets, while equity-type and derivative-type funds grew by 25.2% and 27.5%, respectively.

Exchange-traded funds (ETFs) increased by 43.3%, from 121.1 trillion KRW in 2023 to 173.6 trillion KRW last year.

Private funds increased by 34.2 trillion KRW compared to the previous year, mainly in real estate, mixed assets, and bond-type funds. Among these, mixed assets grew by 20.8%, while real estate and bond-type funds increased by 9.5% and 11.9%, respectively.

Discretionary investment contract assets totaled 614.2 trillion KRW, an increase of 56.4 trillion KRW compared to the previous year.

The Financial Supervisory Service evaluated, "The improvement in net profit of all asset management companies is attributed to the increase in fee income related to fund management and discretionary advisory services," adding, "However, due to decreased securities investment gains, increased operating expenses, and the rise in small-scale private asset management companies, the proportion of loss-making firms has increased."

This content was produced with the assistance of AI translation services.