Timefolio Asset Management to Double Monthly Distributions: Korea Plus Dividend ETF to Pay 1% in September

[Financial News] Timefolio Asset Management will double the September distribution of its TIME Korea Plus Dividend Active ETF from the usual level. By adding a special distribution funded by investment performance to the regular monthly distribution, it will return approximately 1.0% to investors.
According to financial investment industry sources on the 23rd, Timefolio Asset Management's TIME Korea Plus Dividend Active ETF is scheduled to add a 0.5% special distribution to this month's regular 0.5% monthly distribution. The move is intended to share the previous quarter's investment performance with investors and marks the third special distribution this year, following those in March and June.
To receive the distribution, investors must purchase the ETF by the 28th and hold it through the market close. The ex-distribution date is the 29th, the record date is the 30th, and payment is scheduled for the 2nd of next month.
The source of the distribution stands out. Unlike conventional dividend-focused ETFs, which primarily use dividends received from their holdings as a distribution source, this product can also use trading gains generated through stock investment as a source of distributions. When investment performance is strong, the structure adds a special distribution to the regular monthly distribution.
Distributions funded by gains from trading domestically listed stocks are not subject to dividend income tax. As of the record dates from January through August this year, cumulative distributions totaled 1,514 won per share. Of that amount, 1,214 won, or 80.2%, was excluded from taxation, while 300 won was taxable.
The investment strategy has also moved beyond a dividend-stock-only approach. In the first half of the year, the fund kept dividend stocks as its core holdings while increasing its exposure to AI and semiconductors. In the second half, it reduced those positions somewhat and expanded its holdings of defensive and financial stocks. As of the 22nd, SK hynix had the largest weighting at 18.8%, followed by Samsung Electronics at 17.3%, Meritz Financial Group at 4.4%, DB Insurance at 4.2%, and Woori Financial Group at 3.7%.
A representative of Timefolio Asset Management said, "The core of our investment strategy is to generate cash flow through dividends while also participating in the growth of companies leading the market." The representative added, "This special distribution was arranged to share with investors the investment performance achieved by adjusting the portfolio in line with market changes."
The representative continued, "We are maintaining a barbell strategy by holding both AI-focused growth stocks and sectors capable of withstanding high interest rates and high oil prices." The representative added, "We will pursue growth opportunities while also responding to the uncertainty caused by prolonged inflation."


[email protected] Kim Hyun-jung Reporter