SOL Palantir Covered Call OTM Bond Mix Pays 240 KRW Monthly Dividend per Share

Shinhan Asset Management announced on August 1 that the 'SOL Palantir Covered Call OTM Bond Mix' and 'SOL Palantir US Treasury Covered Call Mix' ETFs will distribute monthly dividends of 240 KRW and 150 KRW per share, respectively. The annualized distribution rates are 26.4% and 16.64%, respectively.

The SOL Palantir Covered Call OTM Bond Mix ETF recorded the highest per-share dividend among the 43 covered call ETFs listed in Korea, drawing attention as a monthly dividend strategy product that combines profitability and stability. Thanks to inflows from pension investors, its net assets surged from 8 billion KRW at the time of listing to 62.4 billion KRW in just three months.

Kim Gideok, Head of Quant & ETF Management at Shinhan Asset Management, explained, "Since listing, the price of Palantir shares, which is the underlying asset, has risen by more than 60%. This has enabled us to secure sufficient dividend resources by adding the weekly OTM call option selling premium to the stock valuation gains." He added, "We will continue our policy of maximizing the use of secured resources to distribute as dividends."

Palantir is a company that provides solutions to various industries through its artificial intelligence (AI)-based analytics platform. Its core products include Gotham for counterterrorism and cyber response, Foundry for supply chain and productivity optimization, Apollo for operational platform automation, and AIP (AI Platform) as a generative AI solution for enterprises.

The company holds multiple key products and has recently expanded its customer base beyond defense and intelligence agencies to global private enterprises, leading the AI software industry.

Palantir's share price, which was around 90 dollars per share in April, rose to 159.8 dollars by the end of July. Institutional demand is also rapidly increasing as institutional investors such as the Ohio Public Employees Retirement System (OPERS) and the Czech National Bank have made large-scale purchases.

The SOL Palantir Covered Call OTM Bond Mix ETF employs an aggressive covered call strategy that partially participates in Palantir's share price appreciation while generating income by selling OTM call options. In contrast, the SOL Palantir US Treasury Covered Call Mix ETF allocates up to 30% to Palantir and pursues a more stable monthly dividend income by utilizing a covered call strategy based on long-term US Treasury bonds.

This structure allows investors to pursue both capital gains and monthly dividend income by investing in Palantir while applying a covered call strategy. It is also eligible for 100% investment through pension savings and retirement pension (DC/IRP) accounts. Since option premiums are not subject to US withholding tax, the tax deferral effect within tax-advantaged accounts can be maximized.