asset allocation of the Fund may change regularly or from time to time in response to the following changes in the stock market or the environment relating to the invested stocks, ¾ if stocks comprising the benchmark index are replaced regularly or from time
to time; ¾ if the market capitalization based weighting changes due to paid-in capital
increase or conversion of CBs to shares; ¾ if the issuers of the underlying stocks become bankrupt; or ¾ if the issuers of the underlying stocks undergo mergers, split-offs, etc.
The asset manager will continually adjust the portfolio to replicate the rate of
return of the benchmark index.
Causes of Tracking Errors
The performance of the Fund may differ from that of the benchmark index.
file, but please be advised that nonetheless, tracking errors can occur: ¾ The Fund will refer to KOSPI 200 as benchmarks rather than copying
composition thereof as it is, considering the likelihood of bankruptcy of the issuers of the stocks held thereof and the liquidity of such stocks. This may cause Tracing Error to occur. ¾ Various fees or costs and expenses relating to the Fund (sales commission,
index usage fees, etc.) affect the net asset value of the Fund. ¾ Cash dividends from the shares held as Fund assets add to the net asset
value of the Fund. ¾ Replacement of, or changes in the composition of, the portfolio due to causes
necessitating portfolio adjustment. ¾ Despite due diligence by the asset manager, the bankruptcy of an issuer of
stocks held as Fund assets.
2. Investment Risks
Risk of loss of This Fund is a performance-based investment product, where the principal is not
guaranteed nor protected. There is a which will be borne by the investor.
risk of loss of all or part of the principal, The asset manager or the Authorized
Participant or any related person takes no responsibility for investment losses.
Market risks and By investing in stocks, this Fund is exposed to risks of price fluctuation, interest
rate fluctuation and other changes in macroeconomic indicators. The value of the Fund assets may drastically change depending on the business, financial and credit conditions of the issuers of the underlying stocks.
s Because of the leveraging effect, derivatives (futures) are exposed to higher risks
than direct investment in underlying assets.
Risks of Tracking This Fund aims to replicate the benchmark index, but this may not be achieved
due to realistic restrictions, such as fees, sales commissions and other costs and expenses. If you invest based on the assumption that the rate of return for this Fund will be the same as for the benchmark index, you may suffer unexpected losses due to the tracking error.
of If tracking error exceeding the rate prescribed in relevant rules occur and subsists