'Low-Fee, Active' Midas Basic TDF Surpasses 100 Billion Won in Assets Under Management

Midas Asset Management announced on October 14 that the total assets under management for its 'Midas Basic Target Date Fund (TDF)' series surpassed 100 billion won as of October 2.

The Midas Basic TDF employs an active strategy that seeks returns above the market, despite its low annual management fee of 0.15%. Since TDFs are typically long-term investment products with horizons of 20 to 30 years, the cost structure has a significant impact on performance. The Midas Basic TDF has attracted attention from pension investors due to its lower fees compared to the industry average.

The investment structure is also distinctive. The Midas Basic TDF invests in region-specific master funds that are directly managed by active equity managers. These master funds do not incur additional fees. In contrast, TDFs that invest in a fund-of-funds structure inevitably generate double fees.

There are also many cases where adopting asset allocation models from foreign financial institutions leads to additional advisory fees. Midas reduced investment costs by utilizing its own internally developed TDF model.

The currency hedging strategy is also differentiated. Midas determined that currency hedging is less effective for long-term investments, so it does not apply currency hedging and instead adopts a strategy of slightly increasing the proportion of domestic assets. This approach reduces currency hedge rollover costs while naturally mitigating exchange rate volatility through the allocation of both domestic and overseas assets.

The outstanding performance of Midas’s flagship active funds included in the TDF has also been notable. It incorporates six funds-'World Invest EMP', 'Global Blue Chip Dividend Income', 'Asia Leaders Growth Equity', 'Miso Small and Mid Cap Equity', 'K200 Index', and 'Prime Bond Master Fund'-and has consistently delivered returns above benchmarks in each asset class.

A Midas Asset Management representative stated, "The synergy between a rational cost structure and active management by fund managers allows us to expect long-term returns."

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