The Capital Group, a major US asset manager with about $3 trillion in assets under management (AUM), realized gains by trimming roughly 1.5% of its stake in SK hynix (000660.KS). Before the sale, the Capital Group was SK hynix's fourth-largest shareholder. The Capital Group also disposed of part of its stake in BNK Financial Group, while raising its holdings in KT&G and Eugene Technology through purchases.
According to the Financial Supervisory Service's Data Analysis, Retrieval and Transfer (DART) system Monday, the Capital Group's SK hynix holdings fell from 36,137,758 shares (a 4.96% stake) on Jan. 30 this year to 24,615,832 shares (3.45%) on May 29. The Capital Group steadily sold SK hynix shares from February through May. The move is interpreted as profit-taking after SK hynix shares climbed sharply this year. The Capital Group disclosed the reason for the sale as "to recover investment funds." The Capital Group was SK hynix's fourth-largest shareholder and at one point held more than 7%.
Founded in 1931, the major US asset manager Capital Group has AUM approaching $3 trillion. It is known for pursuing long-term value investing through diversified investments in blue-chip companies worldwide.
The Capital Group reduced its BNK Financial Group stake from 6.10% to 5.04%, while raising its KT&G stake from 5.61% to 7.21%. KT&G can serve as a defensive stock based on stable earnings amid recently heightened market volatility. There is also a possibility that it will expand its long-strengthened shareholder return policy in the second half of this year. KB Securities forecast KT&G's annual dividend yield at a minimum of 3.6%. With this purchase, the Capital Group rose to become KT&G's fourth-largest shareholder. The Capital Group disclosed Monday that it had raised its stake in KOSDAQ-listed Eugene Technology from 5.23% to 6.54%.
