Hantoo Asset Management "ACE 24-12 Corporate Bonds (AA- or higher) Active, Maturity Date on the 20th"
Korea Investment Trust Management announced on the 5th that the ACE 24-12 Corporate Bond (AA- or higher) Active Exchange-Traded Fund (ETF) will be delisted on the 20th due to the expiration of its duration.
The ACE 24-12 Corporate Bond (AA- or higher) Active ETF is a maturity-matching bond ETF product that Korea Investment Trust Management listed in November 2022. Unlike traditional bond ETFs, maturity-matching bond ETFs automatically liquidate when the maturity of the included asset group arrives. The maturity of the included asset group can be confirmed from the product name. In the case of the ACE 24-12 Corporate Bond (AA- or higher) Active ETF being delisted this time, it includes bonds maturing in December 2024.
The underlying index of the ACE 24-12 Corporate Bond (AA- or higher) Active ETF is the 'KIS Credit 2412 Maturity Total Return Index,' and the estimated target maturity yield (YTM) at the time of listing was 5.58%. As of the previous day, the absolute return since the ETF’s listing was 6.35%, exceeding the target. Since the YTM presented by maturity-matching bond ETFs is not a guaranteed yield, it is important whether the actual yield can be achieved at maturity.
The redemption payment for the ACE 24-12 Corporate Bond (AA- or higher) Active ETF is scheduled to be paid on the expiration date of the duration, the 20th of this month. To facilitate this, trading of the product will be suspended from the 17th, and delisting will occur on the 18th. Investors wishing to trade before maturity must complete their transactions by the 16th.
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Meanwhile, Korea Investment Trust Management will also delist the ACE Value Large Cap ETF and the ACE Vietnam VN30 Futures Bloomberg Leveraged (H) ETF on the 18th, along with the ACE 24-12 Corporate Bond (AA- or higher) Active ETF. These two products are small-scale ETFs with trust principal amounts under 5 billion KRW. Redemption payments will be made on the 20th and 26th, respectively, after delisting.
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