'ACE Global Memory Semiconductor TOP3 Bond Mixed Active' ETF Newly Listed

Invests in leading global memory companies with oligopolistic positions and bonds
Monthly distributions, paid at the end of each month

Korea Investment Management said on the 3rd that it will newly list the ACE Global Memory Semiconductor TOP3 Bond Mixed Active ETF.

The ACE Global Memory Semiconductor TOP3 Bond Mixed Active ETF is a bond-mixed product that invests approximately 50% in global memory semiconductor companies and 50% in domestic bonds. Its benchmark is the FnGuide Global Memory Semiconductor TOP3 Bond Mixed Index (KRW-converted), calculated and published by FnGuide.

For the equity portion of the portfolio, the fund selects global memory semiconductor companies whose business profiles closely match keywords such as memory semiconductors, DRAM, NAND, and high-bandwidth memory (HBM). As of the day before listing, the stocks scheduled for inclusion are Micron, Samsung Electronics, and SK hynix. These three companies rank first to third in market share in the DRAM and HBM sectors.

The bond portion will primarily consist of short-term Treasury bonds and Monetary Stabilization Bonds. The main holdings will include Treasury bonds with remaining maturities of more than one month and up to two years, and Monetary Stabilization Bonds with remaining maturities of more than one year and up to two years. The fund will rebalance daily to adjust the proportions of stocks and bonds. Since bonds account for 50% of the overall portfolio, the fund can be held up to the 100% limit in defined contribution (DC) retirement pension plans and individual retirement pension (IRP) accounts.

In addition, the ETF makes monthly distributions. Distribution funds will come from income generated by the assets held, including dividends and interest, as well as trading gains. Distributions are scheduled to be paid early in the following month, with the last business day of each month serving as the record date.

Kim Wonjae, manager in the Global Equity Management Department at Korea Investment Management, said, "The ACE Global Memory Semiconductor TOP3 Bond Mixed Active ETF allows investors to invest in leading companies that have established oligopolies in the global memory market through a single ETF. Thanks to its high bond allocation, it can also be held up to the 100% limit in retirement pension accounts. In effect, it offers a way to address both semiconductor investing and retirement investing at once."

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