'TIME Korea Plus Dividend Active' ETF to Pay Special Dividend in September

0.5% Regular Monthly Dividend Plus 0.5% Special Distribution
Dividend Payable to Holders Who Buy and Hold by September 28

TIMEFOLIO Asset Management announced on the 23rd that its 'TIME Korea Plus Dividend Active' Exchange Traded Fund (ETF) will pay a total distribution of 1.0% in September, which consists of a regular monthly distribution of 0.5% plus an additional special distribution of 0.5%.

The special distribution is intended to share last quarter's performance with investors, following similar payouts in March and June of this year. To receive this distribution, investors must purchase the ETF by September 28 and hold the shares through the market close on that day. The record date is September 30, and the payment is scheduled for October 2.

The key strategy of the TIME Korea Plus Dividend Active ETF is to adjust both the portfolio components and their weightings in response to prevailing market conditions. When the market is unstable, the fund manages risk by focusing on stocks less sensitive to economic cycles. During uptrends, it increases exposure to market-leading stocks with expected earnings improvement. The timing of dividends by each company, as well as plans for shareholder returns such as dividends and share buybacks, are also considered in the strategy.

In the first half of the year, the fund maintained its investments in dividend stocks while increasing holdings in AI and semiconductor sectors. In the second half of the year, it has partially reduced AI and semiconductor exposure, while increasing allocations to defensive and financial stocks to prioritize risk management. As of September 22, the major holdings are: SK hynix (18.8%), Samsung Electronics (17.3%), Meritz Financial Group (4.4%), DB Insurance (4.2%), and Woori Financial Group (3.7%).

Another distinctive feature is that the distribution fund consists of both the dividends from held stocks and realized capital gains. Profits generated from stock management serve as the source for special distributions in addition to the regular monthly payouts.

Notably, distributions sourced from capital gains on domestically listed stocks are not subject to dividend income tax. As of the record date, the cumulative per-share distribution for January to August this year was 1,514 won, of which approximately 80.2% (1,214 won) was exempt from taxation. Only 300 won was taxable.

A representative from TIMEFOLIO Asset Management stated, "The core of our strategy is to generate cash flows through dividends while also participating in the growth of market-leading companies. This special distribution was arranged to share the fund's performance—achieved by adjusting the portfolio in response to market changes—with our investors."

However, special distributions are not regularly guaranteed, and both regular and special distribution amounts may fluctuate—or may not be paid—depending on fund performance and market conditions. The net asset value will decrease by a corresponding amount upon the payment of distributions, and holdings and weightings may also change.

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