Samsung Asset Management Reflects Samsung Electronics, SK hynix Special Dividends in "KODEX 200 Target Weekly Covered Call"

Distributions from Samsung Asset Management's flagship monthly dividend covered-call exchange-traded fund (ETF) will increase substantially, buoyed by plans by leading Korean semiconductor companies Samsung Electronics and SK hynix to pay special dividends.

On November 11, Samsung Asset Management said it would increase distributions in November and December for its KODEX 200 Target Weekly Covered Call ETF, reflecting Samsung Electronics' special dividend.

The increased distributions will be made by splitting the funds from Samsung Electronics' special dividend received by the ETF into two equal portions and paying them to investors in November and December. Accordingly, the special dividend will be reflected in the mid-month distributions for November and December of the KODEX 200 Target Weekly Covered Call, a product that makes distributions twice a month.

In addition, the special dividend on the fund's holdings of SK hynix, which will become eligible for the dividend at the end of November, is expected to be reflected in the December distribution. This is in line with the purpose of an amendment to the Enforcement Decree of the Income Tax Act requiring regular distributions of interest and dividend income held by funds, as well as the distribution policies of individual products. The move is intended to return the special dividend funds to investors within the year rather than carry them over into the next year.

As a result, investors will receive special dividends from Samsung Electronics and SK hynix in succession, in addition to the existing call option premiums. The November distribution, calculated as of November 10, is 266 won per share, equivalent to a monthly distribution rate of 1.75%. This is an increase of 0.28 percentage points from the previous month's distribution rate of 1.47%.

The record date for the November distribution is November 13. The record date is usually the 15th of each month, but since November 15 falls on a Sunday, the preceding business day, November 13, was set as the record date. The ex-distribution date is November 12, and investors seeking to receive a distribution that includes Samsung Electronics' special dividend must buy shares by November 11. The distribution will be paid on November 17.

Im Tae-hyeok, executive vice president of Samsung Asset Management and head of its ETF Management Division, said, "The special dividends from Samsung Electronics and SK hynix will be added in succession in November and December to the stable monthly distributions based on existing option premiums, further enhancing the appeal of year-end dividends. Even for products investing in the same KOSPI 200, eligibility for special dividends and the actual distribution dates may vary by product, so investors should check carefully."

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