Samsung Asset Management's KODEX Money Market Active Surpasses 500 Billion KRW in Net Assets

Samsung Asset Management announced on the 20th that ‘KODEX Money Market Active’ surpassed 500 billion KRW in net assets within two weeks of its listing. It is analyzed that the net asset value is rapidly increasing thanks to the surge in investors' demand for short-term fund management and the highest returns compared to similar products.

KODEX Money Market Active is a product that invests in ultra-short-term bonds and CP (commercial paper) to minimize price fluctuation risks due to interest rate changes, while pursuing additional returns by utilizing more flexible management conditions than existing MMFs. The benchmark index is composed of short-maturity assets, making its portfolio and duration similar to those of existing MMFs. Meanwhile, it has more relaxed management restrictions than MMFs and is subject to market valuation, allowing it to seek additional returns ahead of the current interest rate cut period.

In the current interest rate environment where bank deposit rates have fallen to the low 3% range, the product’s design to achieve high returns attracted investors’ attention. Since its listing on the 6th, KODEX Money Market Active has recorded an annualized return of 4.08%, the highest among similar products. As a result, institutional investors are rapidly entering, and individual investors have been net buyers continuously since the listing.

‘KODEX Money Market Active’ was listed at 100,000 KRW per share, designed to relatively lower investors’ actual transaction costs compared to other products. By offering tightly spaced bid and ask LP quotes aligned with a 5 KRW quoting unit, it provides investors with reduced transaction costs based on actual buying and selling prices.

Yoon Sung-in, manager at Samsung Asset Management, explained, “It can be used in various ways, from a ‘safe haven for investment standby’ to ‘preparing for pension withdrawals,’” adding, “There is a growing demand from individual investors and institutional clients who want to manage short-term funds stably.”