Samsung Asset Management announced on the 7th that it will distribute the first dividends to investors holding KODEX U.S. S&P 500 and KODEX U.S. Nasdaq 100, which are representative U.S. stock index exchange-traded funds (ETFs). Additionally, starting in July, it will distribute the dividends that had been reinvested over the past period over 15 quarters.
KODEX U.S. S&P 500 and KODEX U.S. Nasdaq 100 have been operating under an automatic reinvestment (total return) method. However, according to the amended income tax law enforcement ordinance announced by the Ministry of Economy and Finance, starting in July, dividends generated from overseas stock-type total return ETFs will be settled and distributed at least once a year. As it can no longer operate under the total return method, Samsung Asset Management transitioned KODEX U.S. S&P 500 and KODEX U.S. Nasdaq 100 to a price return method for dividend distribution as of January.
Samsung Asset Management has decided to pay the accumulated dividends to investors holding the two ETFs on the second business day of the month following the last business day of January, April, July, and October each year. Holders as of July 31 and October 31 this year will receive the accumulated dividends along with the regular dividends on August 4 and November 4, respectively.
The distribution rate of accumulated dividends for KODEX U.S. S&P 500 is approximately 0.27% of the net asset value (NAV) for the payment quarter, while KODEX U.S. Nasdaq 100 is set at approximately 0.14%.
Separately from the accumulated dividends, the first distribution following the transition to the price return method was paid on this day. The distribution amounts for KODEX U.S. S&P 500 and KODEX U.S. Nasdaq 100 are 56 won and 33 won per share, respectively.
Im Tae-hyuk, head of the ETF management division at Samsung Asset Management, noted, "There have been many inquiries from investors curious about the distribution method since the announcement of the income tax law enforcement ordinance revision, so we have been considering the distribution payment methods in various ways along with law firms and tax firms," and added, "We will continue to think and decide from the investors' perspective and ensure transparent communication so that investors can invest with confidence."