Hanwha Asset Management announced on the 4th that the net assets of the exchange-traded fund (ETF) of "PLUS high dividend stocks" exceeded KRW 2 trillion. It is the first time in seven months since it surpassed 1 trillion won in net assets in June last year.
According to the Korea Fund Ratings Fund Square, the net assets of the "PLUS high dividend stock" ETF stood at KRW 2.41 trillion as of February 3.
With this achievement, Hanwha Asset Management will have not only 1 trillion won worth of ETFs such as "PLUS K Defense" ETF and "PLUS 200" ETF, but also 2 trillion won worth of ETFs.
The "PLUS High Dividend Stock" ETF, which was listed in August 2012, has grown steadily with stock prices and distributions for more than 13 years. Net assets grew 36.5% annually and distributions grew 10.5% annually since the first distribution in December 2013.
Hanwha Asset Management explained, "Earlier last year, the reorganization of the foreign tax system served as a catalyst for the growth of the PLUS high dividend stock ETF," adding, "As most of the tax deferral benefits for foreign investment funds and ETF distributions disappeared due to the reorganization of the system, funds were moved to the PLUS high dividend stock ETF, Korea's leading dividend ETF."
The characteristic of the "PLUS high dividend stock" ETF is that it uses only the stock dividends it holds as a distribution resource. Gains on stock trading or principal are not used for distribution.
Based on the 'PLUS high dividend stock' ETF, Hanwha Asset Management has expanded to a series of high dividend stocks worth a total of KRW 2.8929 trillion, including △PLUS high dividend share mix △PLUS high dividend shareholder clickbirds call △PLUS high dividend share fixed curbirds call △PLUS high dividend share.
"PLUS high dividend stocks have been focusing on the source and sustainability of distributions rather than short-term high-distribution competition for the past 14 years," said Choi Young-jin, vice president of Hanwha Asset Management. "As a result of continuing dividend growth only with cash dividends from companies, not profits from sales, distributions in January this year also increased by more than 10% compared to the previous month."
"Considering the separate taxation benefits of dividend income in the structure of maintaining the principal and growing dividends together, demand will continue to increase mainly for long-term pension investors," he added.
