Samsung Asset Management Changes KODEX US 30-Year Treasury Target Covered Call to 'Monthly Distribution'

Samsung Asset Management announced on the 30th that it will change the dividend payment record date for the ‘KODEX US 30-Year Treasury Target Covered Call (H)’ ETF from the last business day of each month to the 15th.

Accordingly, the dividend payment record date for October will be the 15th, with the actual payment date on the 17th. Currently, there are a total of 16 KODEX monthly dividend products, and as of October, the number of mid-month dividend products will increase to six, including the ‘KODEX US 30-Year Treasury Target Covered Call (Synthetic H).’

The ‘KODEX US 30-Year Treasury Target Covered Call (Synthetic H)’ product, which was listed at the end of April, has attracted investor interest as the U.S. central bank is expected to continuously lower interest rates until 2026, causing its net assets to rapidly increase to 418.9 billion KRW.

The cumulative net purchase amount by individuals has also reached 190.4 billion KRW, and separately, it is estimated that about 95 billion KRW has flowed in from retirement pensions such as DC/IRP, indicating strong interest from individual investors.

The ‘KODEX US 30-Year Treasury Target Covered Call (Synthetic H)’ invests in U.S. 30-year Treasury bonds with more than 20 years to maturity while simultaneously selling weekly call options at a certain level to secure an annual premium of around 12%. Additionally, by reinvesting the interest (coupon) generated from the invested assets back into the assets, it has increased market participation rates. The total fee is also the lowest among similar covered call strategy products investing in U.S. Treasuries, at an annual rate of 0.25%, allowing for additional returns from low fees during long-term investment.

This product is managed with a target annual dividend of 12%, and has so far paid monthly dividends of about 1%, including a recent payment of 107 KRW, or 1.01%. It has recorded a 9.18% return since listing, achieving the highest return compared to similar products due to its high market participation rate. To reduce concerns about foreign exchange losses caused by a decline in the dollar value due to U.S. interest rate cuts, it is operated with a currency-hedged structure and can be fully invested in through pension savings accounts as well as DC/IRP retirement pensions.

Seobo Kyung, a manager at Samsung Asset Management, said, “Since most monthly dividend products have their dividend record dates concentrated at the end of the month, we changed to a mid-month dividend method to broaden investors’ choices. If investors use products that pay dividends at the end of the month and those that pay mid-month together, they can receive dividends twice a month, creating a more efficient cash flow.”

Meanwhile, from the 25th of this month, the product name was changed from the existing ‘KODEX US 30-Year Treasury +12% Premium (Synthetic H)’ to ‘KODEX US 30-Year Treasury Target Covered Call (Synthetic H)’ to unify the naming of covered call products.