X hits on this document

PDF document

kodex200_2.pdf - page 26 / 48

132 views

0 shares

0 downloads

0 comments

26 / 48

De-listing

for certain period, if the trust principal is less than certain amount for certain period, if the number of shareholders is less than the required minimum, if the monthly average trading volume at the Korea Exchange is less than the requirement, this Fund will be de-listed pursuant to relevant rules. In such event, the Fund will be terminated and the Fund assets distributed, but until said distribution, the shares may be difficult to liquidate on the market.

Individual investor’s difficulty recovering investments

in

Individual investors can liquidate the shares only by selling them on the Korea

Exchange.

In

other

words,

individual

investors

cannot

redeem

the

shares

through distributor or the Authorized Participant. This the taxes payable by individual investors cannot be

is because assessed.

the tax base for Accordingly, if

there is not

enough

trading

volume

at

the

may not be

able to

sell the

shares

at

the

liquidity.

Korea Exchange, the individual investor desired price and may have difficulty in

Ú Corporate investors may sell the shares on the Korea Exchange or redeem the shares in Creation Units (100,000 units) or its integral multiple, in which case the shares can be redeemed by the distributor or the Authorized Participant.

Other risks

Due to time difference between the date of redemption order and the date of redemption, investor is exposed to risks of change in net asset value during the interim period to liquidate on the market.

Also, unexpected political or economic events, governmental action, and change of tax system may affect the Fund management, thus redemption may be delayed or restricted for a certain period.

3. Asset Allocation

Investments

Stocks

Equity-linked derivatives

Lending of securities

Ratio No limit.

Not more than 15%

Not more than 50%

Description

Stocks under Article 2(1)6 of the Securities and Exchange Act (only stocks issued by listed companies) Stock index futures, stock index options and stock options (with aggregate margins not more than 15% of the total asset value of the Fund) traded on the securities market under the Securities and Exchange Act Lending of securities held as Fund assets (not more

than 50% of total net assets of the Fund)

Short-term lending, deposit To facilitate redemption and use of funds to be invested. with financial institutions

  • 4.

    Prohibited Investments

    • The asset manager may not instruct the Trustee to do the following, unless they are exceptionally permitted by law or regulation: ¾ Short-term lending in excess of 10% of total Fund assets to interested parties of the asset manager under Article 77 of the Enforcement Decree of the Act; ¾ trading in derivatives with underlying investment securities issued by the same issuer having assessed risk exceeding 10% of total Fund assets; ¾ derivative transactions with assessed risk exceeding 10% of total Fund Assets;

¾ investment resulting in the assessed total risk of the Fund, including the

assessed risk of derivative transaction, to exceed 100% of total Fund assets; ¾ investment in less than 50% of the composite stocks of KOSPI 200 Index; and ¾ failure to include at least 95% of the stocks composing the KOSPI 200 Index

based on market capitalization in the Portfolio Deposit File daily announced pursuant to Article 123 of the Enforcement Decree of the Act.

26

Document info
Document views132
Page views133
Page last viewedTue Dec 06 19:35:57 UTC 2016
Pages48
Paragraphs2058
Words16313

Comments