Samsung Asset Management Lists 'KODEX Money Market Active'

Samsung Asset Management announced on the 6th that it will list the ‘KODEX Money Market Active’ ETF as an ultra-short-term product that can provide higher returns in response to the growing demand from investors for short-term fund management.

‘KODEX Money Market Active’ invests in ultra-short-term bonds and CP (commercial paper) to minimize price fluctuation risks due to interest rate changes while pursuing additional returns by utilizing more flexible management conditions than existing MMFs. The benchmark index is composed of short-maturity assets, making its portfolio composition and duration similar to existing MMFs. Meanwhile, it has more relaxed management restrictions than MMFs and is subject to market valuation, making it easier to achieve additional returns ahead of the current interest rate cut phase. This product was created by incorporating Samsung Asset Management’s expertise, which holds a significant lead in both the public MMF and interest rate ETF sectors.

As of the end of July, Samsung Asset Management holds the number one position with a 13% market share out of the total MMF market size of 203 trillion KRW. In particular, it has firmly maintained the top spot in public MMFs since 2019 and has significantly widened the gap with the second place since last year. The representative MMF public fund, ‘Samsung MMF Corporate No.1,’ surpassed 10 trillion KRW in net assets for the first time in March this year and currently maintains the largest assets under management among MMF funds in the market.

Additionally, Samsung Asset Management already holds the largest scale in the industry with net assets of 9 trillion KRW, 4.5 trillion KRW, and 1.8 trillion KRW respectively for the representative ultra-short-term interest rate ETFs ‘KODEX CD Interest Rate Active,’ ‘KODEX KOFR Interest Rate Active,’ and ‘KODEX 1-Year Bank Negotiable Certificate of Deposit+ Active.’

‘KODEX Money Market Active’ is listed at 100,000 KRW per share, designed to relatively lower the actual trading costs for investors. By offering tightly spaced buy/sell LP quotes aligned with the 5 KRW quotation unit, it provides investors with a cost-saving effect on trading based on actual buy/sell prices.

In particular, it is 100% investable through retirement pension (DC·IRP) accounts, pension savings accounts, and brokerage-type ISA accounts, allowing investors to receive tax benefits such as tax deductions, low tax rates, and tax exemptions.

Yoon Sung-in, manager at Samsung Asset Management, said, “We launched a product in the ETF lineup that can provide additional returns under a stable management foundation like existing MMFs. We designed a portfolio that tracks an ultra-short duration benchmark index to limit the possibility of losses due to interest rate fluctuations and aims for excess returns depending on market conditions.”

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