Samsung Asset Management's KODEX US 30-Year Treasury +12% Premium Surpasses 300 Billion KRW in Net Assets

Samsung Asset Management announced on the 27th that the ‘KODEX US 30-Year Treasury +12% Premium (Synthetic H)’ exceeded 300 billion KRW in net assets just four months after its listing.

As of the closing price on the 26th, this product recorded net assets of 303.6 billion KRW, with cumulative net purchases by individual investors reaching 143.8 billion KRW. Additionally, approximately 71 billion KRW of retirement pension funds have flowed in, indicating high interest from individual investors. Interest in monthly dividend products is strong not only among individuals but also institutional investors, resulting in high demand.

KODEX US 30-Year Treasury +12% Premium invests in US 30-year Treasury bonds with more than 20 years to maturity. At the same time, to secure a premium of around 12% annually, it sells weekly call options at a certain level each week, while reinvesting the interest (coupons) generated from the invested assets to relatively increase market participation. The total fee is also the lowest among similar covered call strategy products investing in US Treasuries, at an annual rate of 0.25%.

Since its listing at the end of April, it has continuously paid dividends at about 1% per month and has recorded a 9.3% return since listing due to high market participation. Furthermore, the currency-hedged structure reduces concerns about foreign exchange losses caused by a decline in the dollar value due to US interest rate cuts. It is designed so that investors can fully benefit from capital gains that may arise from US interest rate cuts. It can be invested 100% in pension savings accounts as well as DC/IRP retirement pensions, offering the advantage of stable returns and tax benefits.

Seobo Kyung, a manager at Samsung Asset Management, said, “Interest in US Treasuries is increasing day by day amid expectations of a US interest rate cut in September,” adding, “‘KODEX US 30-Year Treasury +12% Premium (Synthetic H)’ is an attractive alternative for investors looking to utilize interest rate cuts as an investment opportunity, as it is a currency-hedged product that allows full enjoyment of planned monthly dividends and capital gains through investment in long-term US bonds.”

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