Samsung Asset Management, Early Conversion of Two TR-Type Overseas ETFs to Distribution Type

Published 22 Jan.2025 08:39(KST)

Samsung Asset Management announced on the 22nd that it will early convert two TR-type overseas ETFs to quarterly dividend payment types.

Samsung Asset Management's TR (Total Return) type overseas ETFs, ▲KODEX US S&P500TR ▲KODEX US Nasdaq100TR, will remove the 'TR' notation from their product names starting from the 24th. The first quarterly dividend will be paid as of the end of April this year. Quarterly dividends will be paid based on the end of January, April, July, and October.

The Ministry of Economy and Finance announced through the legislative notice of the '2024 Tax Law Amendment Follow-up Enforcement Decree Revision' that it adjusted the scope of dividend retention for TR-type overseas ETFs to require interest and dividend income to be settled/distributed at least once a year. This will apply to interest and dividends occurring from July 1 of this year.

Samsung Asset Management decided to promptly convert the existing two TR-type overseas ETFs to quarterly dividend payment products in line with government policies to dispel investor misunderstandings and uncertainties about the legislative notice content early.

A Samsung Asset Management official said, "In accordance with the Ministry of Economy and Finance's legislative notice, we will convert the two overseas ETFs with automatic dividend reinvestment to the most common structure, the quarterly dividend payment type." He added, "To help investors accurately understand the products, even if the TR notation is removed from the existing products, the lowest total expense ratio of 0.0099% among similar products will be maintained."

Samsung Asset Management will change the product name of KODEX US S&P500TR to KODEX US S&P500. KODEX US Nasdaq100TR will be renamed KODEX US Nasdaq100. Although the operation method will change to quarterly dividend payment, the same type of expense ratio of 0.0099% will continue to apply.