The NAV per unit is the price at which beneficial certificates are purchased and sold and represents the total value of the investment trust per unit. The Act and the trust deed stipulate that the manager must calculate and make available to the public the NAV per unit for each of the investment trusts it manages, except for those closed-end investment trusts that are listed on the Korea Exchange. The NAV per unit is calculated by dividing the total value of the assets less liabilities, after accounting for securities and foreign currency translation gains/losses, by the total outstanding number of units in the investment trust. Generally, NAV per unit is expressed as the unit price for 1,000 units and is rounded up to the second decimal place.

B. Calculation of Taxable NAV per unit of Contractual-type funds

   The NAV per unit for tax purposes is the value used for assessment of withholding tax liability at the time of redemption or maturity of beneficial certificates. It is calculated by first separating taxable income from non-taxable income, and then by deducting the proportionate trust expenses from each type of income. The resulting taxable income amounts shall be added to the principal, and the total divided by the total number of units outstanding is the taxable NAV.

C. NAV of Corporate-type funds

   The NAV means the price per share and it is required to be posted at the branch and headquarters of its sales agents and announced publicly by electronic documents, etc. The methods for calculation and valuation of securities in the fund assets are the same as those of contractual-type funds. In the case of corporate type funds, taxable NAV per unit shall not be calculated.

A. Valuation of Bonds are following:

B. Valuation of equities are followings:

C. Valuation of Index Options and Futures

   1) Index futures
      Index futures are valued at the settlement price stated on the valuation date.

   2) Index options
      Index options are valued at the NAV of the total trading margin stated by the Korea Exchange on the valuation date.

D. Valuation of securities denominated in foreign currency

E. Real estate is evaluated by acquisition cost.

F. Commercial papers and financial debt-notes issued by financial institutions are evaluated based on the prices by more than two credit rating agencies.

G. OTC derivatives and commodities assets are evaluated by the prices based on the pricing method submitted to the FSC by asset managers.

A. Establishment and Partial Cancellation

1. Initial Establishment (Issue)
   
   At the time of the initial establishment of an investment trust, the trust funds are deposited and the beneficial certificates are issued. At such time, the initial NAV per unit will be 1,000 won for the standard amount of 1,000 units.
   
   
2. Additional Establishment (Additional Issue)
   
   Additional establishment of units refers to the issue of additional units upon request, followed by the deposit of funds. The NAV per unit used for the issue of additional units is determined by dividing the total NAV by the total number of outstanding units of the trust on the day before the date of establishment.
   
   
3. Partial Cancellation of Units
   
   To respond to the redemption of units by investors, the original number of units established is reduced to establish reserves for the partial cancellation of units and related fees. The partial cancellation amount is calculated by dividing the total NAV of the trust by the outstanding number of units and multiplying the result by the number of units to be cancelled. The fees are calculated by dividing the number of units to be cancelled by the number of outstanding units and multiplying the result by any unpaid fees related to the trust's management.

B. Settlement of Accounts and Termination

1. Settlement of Accounts
   
   At the end of a trust's accounting period, as prescribed by the trust deed, the amount of dividend payable is calculated by deducting all expenses from gains available for distribution. The NAV and taxable NAV of the trust are reduced in order to reflect the amount of dividend that will be paid. In general, domestic investment trusts distribute almost the entire amount of gains available for dividend distribution and the dividend amount is subject to withholding taxes.
   
   
2. Termination
   
   A termination refers to the distribution of the total assets of a trust among its investors at the time of the maturity of the trust or the complete cancellation of units. At such time, all securities or assets held in the trust that can be liquidated should be converted into cash, and the amount distributed will be subject to withholding tax on any income gains generated.

   There are three types of trust fees: the management fee, the sales fee or sales commission, and the trustee fee. The management fee is paid to the management company for establishing, operating, and managing the investment trust; the sales fee is paid to the distributor for the sales of the trust and administration for investors; and the trustee fee is paid to the trustee for administration of the investment trust and safekeeping of the portfolio securities. The trust fees are calculated by multiplying the daily total NAV by the percentage fee as provided in the trust deed. These fees accrue on a daily basis as trust liabilities and are paid out as expenses periodically as provided in the trust deed.