Samsung Active Asset "Korea Focuses on 'Dividend Growth' - Global on 'Innovative Industries'"

Samsung Active Asset, KoAct ETF 1st Anniversary
Developing as Korea's 'SCHD' to Become a Leading Domestic Pension Investment Product
Aiming to Deliver Global Active Investment Performance with New Innovative Industry Products

Samsung Active Asset Management held a press briefing at the Korea Exchange Conference Hall on the 5th to commemorate the 1st anniversary of the launch of its active ETF brand 'KoAct'. Samsung Active Asset Management introduced its independent brand KoAct last August.

Min Sua, CEO of Samsung Active Asset Management, stated the future direction of KoAct: "Domestically, we will focus on dividend growth and develop the existing KoAct Dividend Growth Active into Korea's SCHD," and added, "We will demonstrate the achievement of creating long-term pension-type products as active ETFs investing in domestic companies by launching active products aligned with the value-up program to be released this year."

KoAct Dividend Growth Active, which was listed earlier this year, is a representative active ETF of KoAct that invests in Korean dividend growth stocks, modeled after the Korean version of SCHD. SCHD selects investment targets by considering cash flow and ROE in addition to dividends. Similarly, KoAct Dividend Growth Active includes domestic companies that can increase dividend size through expanded dividend payout ratios while also excelling in capital efficiency and cash flow. Its net assets amount to 170 billion KRW, making it the largest in net assets among equity active ETFs launched this year.

KoAct has expressed its intention to the exchange to launch an active ETF utilizing the value-up index, which will be announced in the third quarter of this year. As seen in Japan's value-up cases, active products can achieve better performance than general passive products, thus providing investors with better options.

CEO Min said, "In the second half of the year, KoAct ETFs will launch various active products investing in global innovative industries in line with Samsung Active Asset Management's philosophy of 'investing in the changes of the world.' We will actively contribute to revitalizing the domestic active ETF market by providing differentiated global active investment returns to investors."

KoAct is launching active ETFs by carefully selecting global innovative industries aligned with the key future change themes of ▲Aging Society ▲Climate Crisis ▲Technology (A.C.T.). Following the AI sector, it is reviewing global active products that can explore new investment opportunities in the bio-healthcare and power infrastructure sectors.

Earlier, Samsung Active Asset Management listed its first product last year, the 'KoAct Biohealthcare Active ETF.' KoAct Biohealthcare Active is Korea's first active ETF in the bio-healthcare sector, investing in companies with outstanding technological competitiveness in the next-generation bio-healthcare industry. It surpassed 100 billion KRW in net assets within 13 trading days of listing.

CEO Min said, "Over the past year, we have introduced six active ETFs, growing net assets to 336 billion KRW," and added, "We have ranked 11th out of 26 ETF management companies overall." He continued, "In line with the name 'Korea Active' ETF, which signifies our ambition to grow as Korea's representative active ETF brand, we will continue to strive to execute 'the fastest, the first, and the leading investments'."

Before the launch of KoAct, the net assets of domestic equity active ETFs were around 2.1 trillion KRW, but as of the end of June this year, they have exceeded 4.1 trillion KRW. The share of domestic ETFs increased from 2% to 2.7%. Considering the growth trend of the global active ETF market, including the U.S., Samsung Active Asset Management expects the domestic equity active ETF market to grow to a scale of 30 trillion KRW.

Samsung Active Asset Management expects that the activation of the active ETF market will not only enhance the competitiveness of the entire ETF product lineup but also serve as a positive cycle that can grow the overall fund market by replacing the stagnant public funds.

CEO Min stated, "The launch of KoAct ETFs will not only act as a catalyst for the growth of the domestic active ETF market but will also lead its growth to a global level."

Samsung Active Asset Management currently operates six listed products, starting with 'KoAct Biohealthcare Active,' including 'KoAct Global AI & Robot Active,' 'KoAct Dividend Growth Active,' 'KoAct Global Climate Tech Active,' 'KoAct Tech Core Material Supply Chain Active,' and 'KoAct AI Infrastructure Active.'

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