Midas Asset “Basic TDF 2050” Surpasses 200 Billion Won in AUM

Attracting 100 Billion Won in Just Three Months

Midas Asset Management announced on the 4th that the assets under management (AUM) of its “Midas Basic TDF 2050” exceeded 200 billion won as of January 26. This achievement comes about 3 years and 5 months after the fund was launched on August 26, 2022.

In particular, after reaching 100 billion won in AUM at the end of October last year, the fund attracted an additional 100 billion won in just three months. Considering that it took about 3 years and 2 months to achieve the initial 100 billion won, the pace of inflows has accelerated dramatically.

The key driver behind this AUM growth is its strong performance. According to Zeroin, as of January 29, the fund ranked first in 1-year returns among TDF 2050 products. At the core of this performance is its “low-cost, high-efficiency” structure. The fund’s management fee is 0.15% per year, which is lower than the industry average of around 0.23%. Given that pension products are typically held for 20 to 30 years as long-term investments, low fees become a decisive factor in maximizing the power of compounding.

The investment structure is also differentiated. Midas Basic TDF invests in region-specific master funds that are directly managed by active equity fund managers, and no additional fees are charged at the master-fund level. By contrast, many other TDFs invest indirectly by including ETFs, which inevitably leads to double-layered fees. In many cases, foreign financial institutions’ asset allocation models are adopted, which adds advisory fees on top. In comparison, Midas Asset Management uses its own in-house TDF model, thereby eliminating the burden of overseas advisory fees.

Another major contributor to the fund’s performance is Midas Asset Management’s distinctive “currency-exposed asset allocation strategy.” Unlike other TDFs that use currency-hedging strategies, Midas Asset Management determined that currency hedging offers limited benefits for long-term investment and boldly chose a currency-exposed strategy. Given that a large portion of the equity allocation in TDFs is invested in U.S. dollar-denominated assets, implementing currency hedging entails substantial costs just to roll over the hedge positions every three months. Instead of incurring these costs, Midas finely adjusts the allocation between domestic and overseas assets to naturally offset exchange-rate volatility, thereby realizing a “natural hedge.”

Above all, the core driver of performance has been the strong track records of Midas Asset Management’s flagship funds included in the TDF. These funds have consistently generated returns exceeding their respective benchmarks (BMs) in each asset class. Examples include: “World Invest EMP” (+19.95%, +0.17 percentage points vs. BM), “Global Bluechip Dividend Income” (+13.86%, no BM), “Asia Leaders Growth” (+36.82%, +15.92 percentage points vs. BM), “Miso Small & Mid Cap” (+77.33%, +36.65 percentage points vs. BM), “K200 Index” (+133.33%, +8.01 percentage points vs. BM), and “High-Grade Bonds” (+3.25%, +0.82 percentage points vs. BM).

A Midas Asset Management official said, “The combination of a rational cost structure and active management by our fund managers has created a synergy that enabled solid performance,” adding, “However, since past performance does not guarantee future results, we will continue to closely monitor market conditions and do our utmost to deliver stable returns over the long term.”

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