In the competition to sell the mid-risk, mid-return pension product called the Didim Fund, Samsung Securities overwhelmed Mirae Asset Securities, the number one pension operator in the securities industry, by a significant margin. The Didim Fund's dedicated screen, which Samsung Securities applied to its mobile trading system (MTS) first, played a crucial role. There are also analyses suggesting that the extreme difference in market share indicates that the Didim Fund has not yet established itself.
According to the financial investment industry on the 6th, as of the end of last year, Samsung Securities' market share in Didim Fund sales was reported at 86%. Following Samsung Securities are Mirae Asset Securities (4%), Hana Securities (3%), Shinhan Investment Corp. (2%), among others. The market share gap between the top and second sellers reaches 21.5 times.
Launched in September last year under the leadership of the Korea Financial Investment Association, the Didim Fund is a pension product that limits the stock inclusion ratio to less than 50% and pursues market-neutral performance around 5%. It was introduced to supply a more stable 'catfish' product in the domestic retirement pension market, which has been dominated by life-cycle funds (TDF) that adjust portfolios according to the retirement timing.
According to the Korea Financial Investment Association, approximately 100.4 billion won flowed in during the five months from the launch of the Didim Fund until mid-February this year. The current market share of selling firms is said to be similar to that at the end of last year, meaning that Samsung Securities is responsible for about 90% of fund sales. The industry remarks that "Samsung Securities essentially sold the fund alone."
This trend is a result that the financial authorities and the Korea Financial Investment Association, as well as the operators, did not expect at all. Initially, the financial authorities and the Korea Financial Investment Association anticipated that Mirae Asset Securities, the strongest in the pension sector, would dominate Didim Fund sales as well. The Didim Fund is sold only through securities companies, not banks. A government official noted, "Upon opening the lid, we were surprised to see the concentration in Samsung Securities."
The Korea Financial Investment Association analyzes that the configuration of Samsung Securities' MTS screen has caused this unexpected outcome. In Samsung Securities' MTS, 'mPOP', when entering the pension category, the TDF and Didim Fund are listed separately. Investors can easily find the Didim Fund lineup through this shortcut.
Currently, other selling firms such as Hana, Shinhan, KB, NH, Daishin, and Woori have also applied dedicated shortcut paths for the Didim Fund in their MTS, but Samsung Securities, which created it first, is reaping significant benefits from its first-mover advantage. In contrast, Mirae Asset Securities lists TDF and Didim Funds together without distinction, meaning investors have to input specific search terms to filter just the Didim Fund.
While preparing for the launch of the Didim Fund last year, it is reported that the Korea Financial Investment Association requested selling firms to cooperate in establishing MTS shortcut paths. For the association, Samsung Securities, which responded first to the request, has become a savior. The Didim Fund is a key project for President Seo Yoo-seok of the Korea Financial Investment Association.
The financial authorities believe that the inflow of the Didim Fund will surge only if Mirae Asset Securities and Korea Investment & Securities participate in establishing MTS shortcut paths. An industry source said, "The IT sectors of these two major securities firms are currently focused on alternative trading systems," adding that "application of the Didim Fund won't happen immediately."
The phenomenon of concentration in Samsung Securities is also viewed by the industry as evidence that the Didim Fund, a late-comer pension product, has yet to establish itself. An industry insider said, "The fact that Samsung Securities swept the market share just by creating a shortcut path in its MTS indicates that investors are still not well-acquainted with the Didim Fund."