invests KRW 10 million. It is based on the assumption that all returns are reinvested, annual rate of return is 5%, and the fees and costs are constant. 2) Actual fees and costs payable by the investors are subject to change depending on changes in “other” fees, reinvestment of returns, increase or decrease of fees, etc.
) Fee Calculation Period:
The period for calculating the Fees (“Fee Calculation Period”) shall be from the launch date of the Fund to the record date for payment of the Dividend (“Distribution Payment Record Date”), which is more specifically described below: The Fees are withdrawn on the payment date of the Dividend: ¾ The first Fee Calculation Period after the launch date of the Fund: From the launch date to the second Distribution Payment Record Date after the first Distribution Payment Record Date after the date of initial creation. ¾ Fee Calculation Period after the first Fee Calculation Period: From the day following the Fee Calculation Period 1 to the first Distribution Payment Record
Date. ¾ Fee Calculation Period upon termination of the Trust Agreement:
From the day
following the Fee Calculation Period to the date of termination of the Trust Agreement.
Unlike other funds, the Fund does not distribute income earned during a fiscal year at the
end of that fiscal year.
Rather, the Fund distributes dividends earned from the stocks
comprising the Fund assets in four installments over one year as dividends in cash. However, notwithstanding the foregoing, the asset manager may choose not to distribute dividends in a given year to achieve the investment objective (achieve a rate or return similar to that of the benchmark index). For details of the dividend, please refer to the Payment of Dividend section in this Prospectus.
3. Taxation on the Fund
1) Taxation on the Fund:
The withholding tax on the interest/distributions paid from
the Fund is refunded and thus, the Fund does not pay any tax on investment
2) Taxation on the Beneficiaries:
Beneficiaries bear income tax on the interest,
dividend and capital gains arising from the investments (individual-15.4% and corporation-14.0% as of Jan. 31, 2006).
from the Fund However, transfer
gains and capital gains arising from listed stocks, venture and futures trading of listed stocks are tax exempt.
The above tax rate and method of taxation may be subject to change depending on the
IV. Purchase and Redemption of Shares and Distribution
) Creation and Redemption of Fund: