Samsung Active Asset Management Launches KoAct US Brain Treatment Active ETF Benchmarked Against the Solactive US CNS Therapeutics Index

Solactive is pleased to announce another collaboration with Samsung Active Asset Management. Samsung Active Asset Management has chosen the Solactive US CNS Therapeutics Index as the benchmark for its latest actively managed KoAct US Brain Treatment Active ETF. This collaboration highlights Solactive’s capability of constructing indices in dynamic and high-growth sectors such as the central nervous system (CNS) therapeutics market.

The global CNS therapeutics market is estimated to be worth between $147 billion and $169 billion worldwide by 2027, increased from $116 billion in 2022. Driven by factors such as the aging population, the increasing prevalence of neurodegenerative diseases, and increased awareness of CNS disorders, the market is poised for further growth, making it an attractive investment opportunity to capture such growth in the healthcare sector.^[1]

The Solactive US CNS Therapeutics Index is designed to track the performance of the top 20 US-listed companies actively involved in developing and commercializing therapies for CNS, psychiatric, and neurological disorders. These include a broad range of diseases, such as Alzheimer’s, Parkinson’s, depression, and epilepsy. The index provides investors with targeted exposure to this highly specialized sector, where innovation is critical to address the significant medical needs by developing complex treatments.  The index selection utilizes an industry classification framework to screen companies, followed by using ARTIS®, Solactive’s proprietary natural language processing technology. This advanced algorithm identifies companies making a significant contribution to actively developing CNS therapeutics, therefore offering a more relevant selection to constantly align with the current industry landscape. The top 3 companies are assigned with fixed weights of 20%, 15%, and 10%, respectively. The remaining companies are weighted by free-float market capitalization, with a maximum individual weight cap of 4%. This structure ensures diversified exposure, allowing investors to benefit from established companies’ stability and emerging companies’ growth potential. 

The ETF listed on 3 September 2024 on the Korea Stock Exchange (KRX) with the ticker code 490330 KS.

Timo Pfeiffer, Chief Markets Officer at Solactive, commented: “We are delighted to extend our partnership with Samsung Active Asset Management. The Solactive US CNS Therapeutics Index is an excellent example of how specialized indices can provide targeted exposure to dynamic sectors in the healthcare industry.  Moreover, Solactive’s ability to deliver efficient solutions with rapid implementation allows our clients to swiftly capitalize on market opportunities while maintaining a high standard of precision and customization.”

Beomjin Seo, Chief of Strategy Solution, Strategy Solution team at Samsung Active Asset Management commented: “We are pleased to expand our partnership with Solactive with Korea’s first active ETF to focus on “cures for brain diseases.” KoAct is committed to offering diverse investment products with KoAct’s insight and expertise in the form of active ETFs to investors to tap the potential growth in the market.”

^{[1] Fostering Success in CNS Innovation}