Mirae Asset Global Investments decided to pay all remaining dividends for the exchange-traded funds (ETFs) "TIGER U.S. S&P 500" and "TIGER U.S. Nasdaq 100," which had faced controversy over a sharp decline in dividends, along with the dividends at the end of April.
According to the financial investment industry on the 10th, Mirae Asset Global Investments announced this on the 7th. The TIGER U.S. S&P 500 and TIGER U.S. Nasdaq 100 are ETFs that track the U.S. Standard & Poor's (S&P) 500 Index and the Nasdaq 100 Index, and they have the largest net worth among domestic ETFs tracking the same indices.
As of the end of January, the TIGER U.S. S&P 500 and TIGER U.S. Nasdaq 100 paid dividends of 45 won and 70 won, respectively. There was no significant difference in the dividends paid by other asset management companies' ETFs that track the same indices, but Mirae Asset Global Investments was criticized for a major reduction.
Mirae Asset Global Investments explained that it distributes all dividends from the corporations in the S&P 500 Index and Nasdaq 100 Index, but for the dividends as of the end of January, they were conservatively set in anticipation of tax method changes on foreign withholding taxes and issues of double taxation on tax-saving accounts. This was to safeguard some of the funds rather than distributing them all for the protection of investors in line with the system reform.
According to Mirae Asset Global Investments, the TIGER U.S. S&P 500 generated a dividend of 65 won per share, of which only 45 won was paid. The TIGER U.S. Nasdaq 100 also distributed only 70 won out of a generated dividend of 243 won.
Mirae Asset Global Investments stated that the remaining dividends of 20 won (65 won - 45 won) and 173 won (243 won - 70 won) are being safely held at the custodian, and they plan to add the interest earned over three months to the payment in full at the end of April.
Mirae Asset Global Investments explained that to avoid confusion regarding the distribution of ETF dividends, they established principles that outline their commitments to investors. These include: the principle that all resources generated during the period will be distributed in full, that sufficient communication will occur with investors if changes to these principles are necessary due to reasons such as the recent tax law amendment, and that the available resources and distribution amounts will be transparently disclosed when distributing dividends for major funds.
Mirae Asset Global Investments said, "We plan to work closely with financial authorities to restore tax benefits for pension investors and solve double taxation issues," adding, "We will do our best to manage investors' valuable assets and contribute to a stable retirement with TIGER ETFs."