New Bond Investment Option! Jko AM Launches 00992B Fund on September 14

【Jko AM Marketing Information】 A new bond ETF has arrived! Jko Asset Management will launch the 00992B Jko Select High-Yield Non-Investment Grade Bond ETF (dividends may be sourced from return of capital, with no guaranteed returns or distributions), with fundraising scheduled to begin on September 14. The issue price is NT$10, and the ETF adopts a monthly dividend mechanism. This ETF focuses on non-investment grade bonds with maturities of 1 to 5 years, targeting bonds with coupon rates above 7%, guided by the principles of 'high coupon, short duration, and strict risk control,' aiming to enhance returns while minimizing the impact of interest rate and credit risks on the portfolio.

In recent years, bond ETFs have become essential tools for investors seeking to generate cash flow. Among them, non-investment grade bonds stand out due to their high coupon advantages and relatively strong long-term performance. According to Bloomberg data on major bond index performances over the past 26 years, the ICE BofA US High Yield Index achieved a cumulative return of 426.89%, surpassing the ICE BofA US Emerging Markets Bond Index (278.57%), the ICE BofA US Investment Grade Corporate Bond Index (258.89%), and the ICE BofA Global Government Bond Index (110.85%), demonstrating the superior long-term return potential of high-yield bonds across various bond categories.

Recognizing the income potential of non-investment grade bonds, Jko Asset Management is launching 00992B, which primarily tracks the 'ICE TPEx 1-5 Year Developed Markets High-Yield USD Non-Investment Grade Bond Index.' Unlike traditional bond ETFs that typically focus only on BB to B-rated bonds, this index not only targets bonds with coupon rates above 7% but also selectively includes higher-yielding CCC-rated bonds as one of the income sources, aiming to increase the portfolio's average coupon rate. According to Bloomberg statistics, the index's average yield over the past 10 years was approximately 8.74%. The high coupon income enhances the appeal for cash-flow-seeking investors looking to 'save via bonds.' (The coupon rate mentioned here reflects only the coupon level of the portfolio bonds and does not represent the fund's actual distribution rate, return, or future performance. Investment outcomes may vary depending on entry timing and do not consider transaction costs.)

However, higher yields come with elevated credit risks. Therefore, the index incorporates dual protection and credit early-warning mechanisms. On one hand, it strictly limits single issuer exposure to a maximum of 2% and single sector exposure to 10%, effectively reducing the impact of individual company defaults and industry-specific black swan events. On the other hand, it establishes a credit early-warning system: if a constituent bond is downgraded by two notches within the past 3 months, 6 months, or 1 year, an automatic exclusion mechanism is triggered, proactively removing issuers with deteriorating credit quality from the index.

Further analysis of the bond composition of the 00992B's tracked index reveals issuers from well-known U.S. and Japanese companies, including Bausch & Lomb, Rakuten Group Japan, Nissan Motor, Sotheby's, Alcoa, Wynn Resorts, and Gen Digital, which owns cybersecurity brands such as Norton and Avast. Through this ETF, investors can gain diversified exposure to bonds issued by companies across various industries and sectors, incorporating familiar global brands into their asset allocation while participating in corporate performance and generating income.

Financial experts analyze that this type of short-duration, high-yield bond ETF is suitable for investors seeking cash flow, small-scale savers aiming to 'save via bonds,' those holding long-term government bonds, and individuals focused on tax planning. Investors needing regular living expenses or reinvesting dividend income can use this ETF to build a steady cash flow. Small-scale investors can gradually accumulate assets through the low entry barrier of a NT$10 issue price. Investors holding large amounts of long-term government bonds can use short-duration bonds to diversify interest rate risk.

From a tax planning perspective, dividends from overseas bond ETFs listed in Taiwan are classified as foreign-sourced income, offering advantages such as exemption from the second-generation National Health Insurance supplementary premium and no dividend withholding tax. If a household's total foreign-sourced income does not exceed NT$7.5 million, it is also exempt from inclusion in the minimum tax base, making the effective return even more significant. 【Jko AM Marketing Information】

*The individual stocks or companies mentioned above are for illustrative purposes only and do not constitute recommendations or investment advice. Data date and source: 2026/4/30; compiled by Jko Asset Management.

Jko Securities Investment Trust Co., Ltd.

FSC Investment Trust New No. 010, 114 / 9F, Building C, No. 225, Section 2, Chang'an East Road, Songshan District, Taipei City / Taipei (02)2750-5555

【Jko AM Independent Management】

This fund has been approved or authorized by the Financial Supervisory Commission (FSC), but this does not imply zero risk. The fund manager's past performance does not guarantee the fund's minimum investment return. The fund manager, while exercising the duty of a prudent manager, is not responsible for the fund's profits or losses and does not guarantee minimum returns. Investors should carefully read the fund's prospectus and risk disclosure statement before subscription. Sales institutions have the fund's prospectus available. Investors may also access it via the company's website or the Public Information Observation System.

This fund's investments are not protected by deposit insurance, the Insurance Stability Fund, or any other related mechanism. Investors must bear profits and losses themselves. The maximum potential loss from fund investment could be the entire principal.

Fees payable by investors and the fund are disclosed in the fund's prospectus. Investors may access this information via the company's official website and the Public Information Observation System.

Economic outlooks mentioned in this document do not necessarily represent the fund's performance. Please refer to the fund's prospectus for investment risks. The asset allocation weights mentioned are for illustrative purposes only and do not represent the fund's mandatory investment allocation. The actual allocation will be adjusted by the fund manager based on actual market conditions. Investors subscribing to this fund hold fund beneficiary certificates, not the investment assets or underlying securities mentioned in this document.

Investors entering at different times will experience different investment performances. Past performance does not guarantee future results.

The fund's risk-return rating is RR3. It is an index-tracking equity fund targeting foreign developed market bond indices, suitable for non-conservative investors who understand the fund's investment characteristics and risks, seek potential fixed-income returns, and can tolerate higher risks. RR3 is determined by calculating the standard deviation of the fund's net asset value volatility over the past five years and classifying it into risk categories based on standard deviation ranges. This classification reflects market price volatility under normal market conditions but cannot cover all risks (e.g., currency exchange rate risk of the fund's denomination, credit risk, liquidity risk, interest rate risk, and exchange rate fluctuation risk). It should not be the sole basis for investment. Investors should still pay attention to the individual risks of the fund they invest in. Potential investment risks include industry business cycles, insufficient liquidity, foreign exchange controls, political and economic changes in investment regions, and other related risks.

Investors should not allocate an excessive portion of their portfolio to funds targeting non-investment grade bonds. Since non-investment grade bonds have credit ratings below investment grade or are unrated and are highly sensitive to interest rate changes, the fund may suffer losses due to rising interest rates, declining market liquidity, or issuer defaults on principal, interest payments, or bankruptcy. This fund is unsuitable for investors unable to bear such risks.

The fund's distributions may be paid from the fund's return of capital via yield equalization. Any portion involving such payments may lead to a reduction in the original investment amount. The fund's distribution rate does not represent the actual return rate, and past distribution rates do not indicate future distribution rates. The fund's net asset value may fluctuate due to market factors. The distribution composition is disclosed on the company's website (www.jkoam.com). The fund's distributions will prioritize targeting the average yield, coupon rate, or dividend yield of the fund's investment portfolio or index to stay as close as possible to a reasonable yield range. However, if uncontrollable factors occur, such as large redemptions before the ex-dividend date causing a significant change in the number of beneficiary units, the fund manager will adjust the fund's distribution payout ratio (actual distributed earnings / audited distributable earnings) to achieve a reasonably aligned yield range.

The performance or yield of the fund's tracked index does not represent the fund's actual return rate, distribution rate, or future performance guarantee. Investment outcomes may vary depending on entry timing and do not consider transaction costs.

Since its inception, the fund has been constructing its investment positions by purchasing securities of the target index and investing fund assets in securities. Price fluctuations of the fund's portfolio components will affect the fund's net asset value performance. The net asset value per unit purchased by investors through subscriptions before the fund's listing is not equivalent to the fund's listing