Samsung Asset Management said on the 26th that it is not reviewing a cut in fees for leverage and inverse exchange-traded funds (ETFs). This statement was made after a report surfaced that its competitor Mirae Asset Global Investments is planning to reduce fees for leverage and inverse ETFs.
On the same day, Samsung Asset Management explained in a statement, "Leverage and inverse ETFs are traded daily based on market fluctuations and the inflow and outflow of ETF funds, unlike market index ETFs, and even small mistakes in daily operations are not permitted. We are operating various monitoring systems to tightly manage the bid-ask spread of leverage and inverse ETFs to ensure that investors experience no discomfort in trading, and we are committed to the management and operation of ETFs."
Samsung Asset Management clarified that the total fee reduction for the U.S. representative indices S&P 500 and Nasdaq 100 ETFs last month was also not a response to competition with other asset managers.
Samsung Asset Management noted, "The reduction in fees for U.S. representative index ETFs in January was aimed at apologizing to investors for the discontinuation of total return (TR) ETFs that reinvest dividends due to amendments to income tax law enforcement ordinances," adding, "We have adequately explained the purpose of the fee reduction to the financial authorities."
He added, "Rather than getting caught up in market share (M/S) competition unrelated to the investment performance of our investors, we will always strive to be a fund manager that continues to provide better and innovative products to ETF investors and to do our best in managing ETFs to avoid any inconvenience in trading."
The previous day, reports surfaced that Mirae Asset Global Investments is planning to cut fees for leverage and inverse ETFs based on domestic indices, such as 'TIGER Leverage' and 'TIGER Inverse,' which are similar products to Samsung Asset Management's flagship products 'KODEX Leverage' and 'KODEX Inverse.' The two companies are competing for the top position in the ETF market, which has a net worth of 180 trillion won. Currently, Samsung Asset Management's ETF net worth accounts for 38% of the entire market, while Mirae Asset Global Investments holds about 35%.