As an exchange traded fund, this Fund has features relating to the creation and redemption that are different from general investment funds: ¾ The Fund is created and terminated by taking in or distributing cash and in-kind securities.
¾ Requests for creation and termination are accepted in 100,000 units which is
one Creation Unit. ¾ The in-kind contribution(creation) and redemption proceeds are received three
business days following the date of request for creation or redemption. ¾ “Business day” as used in this Prospectus means any day on which the Korea
Exchange is open for business.
A Creation Unit is the unit by which an investor may request the creation of the exchange traded fund or a shareholder may request the redemption of the shares of the Fund.
The Creation Unit of this Fund is 100,000 units of shares. Therefore, Shareholder may request creation or redemption of the Fund in 100,000 units a or of thereof (200 etc.). the integral multiple , 0 0 0 u n i t s , 3 000 units The shares 0 0 , this Fund, however, may be traded by units on the Korea Exchange. , Investors
who wish to invest a small amount in the Fund should purchase the shares on the Korea Exchange.
If the asset changes in change the
manager finds it impracticable to create or redeem the Fund due to
the valuation price of the number of units making
Creation Unit, the asset manager may
change in the number of units, the asset manager will, no prior to the effective date of such change, disclose the Exchange and give public notice thereof.
later than change to
) Change of Creation Unit
If the KOSPI 200 index was 150pt at the time of initial creation of the Fund, the valuation price that must be paid in by the investor to create the Fund KRW 1.5 billion [150pt X 100 X 100,000 units (1 Creation Unit)]
However, if the KOSPI 200 index increases to 300pt, the value of the assets to be paid in by the investor increases to KRW 3 billion. Such increase of the
valuation price of the Creation Unit
or redemption process. In Creation Unit to 50,000 units.
may act as a negative factor in the creation case the asset manager may adjust the
2) Balance Amount
To keep an equitable balance between the investors requesting creation of the
Fund and the existing shareholders of the Fund, the Fund uses the following
methods: ¾ Calculation of Balance Amount.
The Balancing Amount is the difference
between the value of the paid-in assets based on the closing price on the