Samsung Asset Management Lists KODEX Financial Bond 1-2 Year (AA- and Above) PLUS Active ETF

Diversified Investment in Selected High-Grade Financial Bonds
Seeking Higher Returns Than Korean Government and Government-Related Bonds
Eligible for 100% Investment Through Pension and ISA Accounts

Samsung Asset Management, a leading name in bond funds, has launched a new financial bond ETF. Samsung Asset Management announced on the 26th that it will newly list the KODEX Financial Bond 1-2 Year (AA- and Above) PLUS Active ETF.

The KODEX Financial Bond 1-2 Year (AA- and Above) PLUS Active ETF is a product that invests in high-quality AAA-rated bank bonds and AA- or higher-rated other financial bonds with remaining maturities of 1 to 2 years. Its key feature is that it seeks higher returns than Korean government and government-related bonds.

The benchmark index of this ETF is the "KAP Financial Bond 1-2 Year Total Return Index," calculated and published by KAP Korea Asset Pricing. This index is composed of bank bonds rated AAA (excluding policy banks) and other financial bonds rated AA- or higher with remaining maturities of more than 1 year and up to 2 years. The product seeks both carry and capital gains by tracking the maturity profile and sector allocation of the benchmark index, while at the same time pursuing stable interest income by investing, with funds raised using the held bonds as collateral, in high-quality bonds that offer a spread over the funding rate.

The KODEX Financial Bond 1-2 Year (AA- and Above) PLUS Active ETF pursues higher performance than Korean government and government-related bonds by diversifying investments in financial bonds with strong credit ratings. As a repo-fund type product preferred by institutional investors, it is suitable both for investors who wish to earn more stable and higher interest income than existing products, and for more aggressive investors seeking higher capital gains.

Retail investors can invest 100% not only through ordinary brokerage accounts but also through tax-advantaged accounts such as retirement pension plans, personal pension plans, and ISAs. When investing through pension accounts, investors can enjoy not only stable returns but also additional benefits such as tax credits, tax deferral followed by low tax rates, and separate taxation.

Lee Kyungwon, manager at Samsung Asset Management, said, "Bond investing is structured so that interest income accumulates over time, and due to the effect of compound interest, small initial differences grow larger as time passes," adding, "The KODEX Financial Bond 1-2 Year (AA- and Above) PLUS Active ETF is a repo-fund type ETF that utilizes an RP-selling strategy to pursue additional stable interest income, making it a useful product for both retail and institutional investors."