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MKIFThe leading infrastructure fund in Korea

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MKIF» Investor centre» FAQs

Investor centre

FAQs

This section answers some of the key questions that prospective investors may have about MKIF. These answers are intended as a guide only and do not represent a full summary of the Terms of Issue or the other agreements affecting MKIF.

1. When was MKIF established?

MKIF was established on 12 December 2002. On 11 November 2005, MKIF changed its name from Korean Road Infrastructure Fund to Macquarie Korea Infrastructure Fund.

2. How is MKIF structured?

MKIF is a registered fund under the Financial Investment Service and Capital Market Act (FSCMA), and is established as an infrastructure fund under the Private Participation in Infrastructure Act (PPI Act).

3. What is MKAM and what role does it play?

MKAM is the acronym for Macquarie Korea Asset Management Company Limited. MKAM is the sole and exclusive manager of MKIF, subject to the Management Agreement dated 13 December 2002, as amended from time to time. Although MKIF has its own Board of Directors (comprising a majority of supervisory directors and MKAM as its corporate director), it does not have any executive staff. MKIF's investment selection and asset management have been "out sourced" to MKAM pursuant to the Management Agreement.

4. What are the contractual arrangements by which MKAM is bound?

MKAM's obligations are contained in the Management Agreement. In managing MKIF, MKAM also needs to manage MKIF in accordance with MKIF's Articles of Incorporation ("AOI"), the provisions of the PPI Act, FSCMA and other applicable Korean legislation.

5. Who is MKIF's administrator?

KEB Investor Service Co., Ltd.

6. Who is MKIF's custodian?

Korea Securities Finance Corp.

7. How do I invest in the MKIF?

As MKIF shares and global depositary shares are listed on the Korea Exchange (KRX) and London Stock Exchange (LSE), respectively trading of shares must be conducted through a KRX registered stockbroker for the common shares and an LSE registered stockbroker for the Global Depository Shares. The KRX website www.krx.co.kr can provide further details on KRX registered stockbrokers. For LSE registered stockbrokers, please visit www.londonstockexchange.com

8. What is MKIF's KRX code?

088980.KS

9. What is MKIF's LSE code?

MKIF.LI

10. When was MKIF listed on the KRX & LSE?

MKIF was listed on the LSE and KRX on 14 and 15 March 2006 respectively.

There is a chronological history of MKIF in the Key events section of this website.

11. Will MKIF be holding a General Shareholders Meeting?

In accordance with the Financial Investment Service and Capital Market Act, MKIF will convene General Shareholders Meeting (GSM) only when there is agenda requiring shareholder approval at GSM.

12. What is the difference between distributions and dividends?

Under FSCMA, only the term (distribution) is used for the sum of the amount paid to shareholders within retained earning (dividend under commercial code) and the amount paid to shareholders over retained earning. As MKIF is subject to the FSCMA, MKIF can distribute monies to shareholders up to the amount equal to the Net Asset Value less Minimum Net Asset Value of the company.

13. When are distributions paid?

MKIF intends to declare and make distributions to its shareholders on a semi-annual basis as end of June and December, subject to the MKIF Board of Directors approval. In accordance with the AOI, distributions shall be paid to the shareholders within a month from the Board approval.

14. What is MKIF's distribution history?

The table below sets forth our distribution for each six-month period starting from the period ended 31 December 2002.

Record date for distribution		Aggregate distribution paid	Per share distribution paid
		(KRW million)	(KRW)
2002.12.31		Nil	Nil
2003.6.30		1,700.00	187.5
2003.12.31		3,221.84	85.5
2004.6.30		13,887.55	212.7
2004.12.31		18,879.33	127.1
2005.6.30		49,241.16	271.4
2005.12.31		53,549.95	223.1
2006.6.30		64,698.04	200
2006.12.31		71,167.84	220
2007.6.30		71,167.84	220
2007.12.31		71,167.84	220
2008.6.30		74,402.75	230
2008.12.31	Cash distribution**	74,413.50	230
	Stock distribution***	39,445.20	122
	Total	113,868.70	352
2009.6.30		76,235.65	230
2009.12.31		53,033.49	160
2010.6.30		53,033.49	160
2010.12.31		60,988.52	184
2011.6.30		54,690.79	165
2011.12.31		54,690.79	165

* Prior MKIF's distribution records do not guarantee of future returns.
** Aggregate cash distribution paid amount includes cash for the fractional shares of stock distribution
*** KRW230 in cash and KRW122 in newly issued shares (Paid newly issued share distribution of 0.02464 per 1 common share owned.)

15. How does MKIF manage its exposure to interest rate movements?

MKIF has entered into a loan facility with a syndicate of banks mostly on a floating rate basis. Although this interest exposure is not currently hedged, MKIF continues to monitor interest rate movements and may, in appropriate circumstances, enter into hedging arrangements to mitigate perceived interest rate risk.

A major proportion of the senior debt entered into by the concession companies in which MKIF invests either carries a fixed interest rate or is hedged into a fixed interest rate exposure..

16. How does MKIF manage foreign exchange risk?

MKIF can only invest in PPI Act designated Korea-based infrastructure projects and concession companies that have no foreign exchange exposure at the fund level. Generally, MKIF's investments receive all of their revenue (dividends and interest payments) in KRW and undertake KRW denominated borrowings and investments and therefore do not have any foreign exchange exposure.

17. How do I contact MKAM?

Address:

Macquarie Korea Asset Management Co., Ltd.

4th Floor, Hanwha Building

110 Sokong-Dong, Chung-Ku

Seoul 100-755 Korea

Telephone 822-3705-8565 Fax 822-3705-8596

Any information or advice contained on this website is general in nature and has been prepared without taking into account your objectives, financial situation or needs. Before acting on any information or advice on this website, you should consider the appropriateness of it (and any relevant product) having regard to your circumstances and, if a current offer document is available, read the offer document before acquiring products named on this website. You should also seek independent financial advice prior to acquiring a financial product.

All securities and financial product or instrument transactions involve risks. Past performance of any product described on this site is not a reliable indication of future performance.

Macquarie only carries on banking activities in those countries it is authorised to do so. Macquarie Bank Limited (MBL) is authorised by the Australian Prudential Regulation Authority (APRA) in Australia to carry out banking business in Australia. Each of MBL, acting through its London branch, and Macquarie Bank International Limited, is authorised and regulated by the UK Financial Services Authority to carry on banking business in the United Kingdom. MBL, acting through its Seoul Branch, is authorised and regulated by the Financial Services Commission in Korea to carry out banking business in Korea. MBL, acting through its Singapore Branch, is authorised and regulated by the Monetary Authority of Singapore to carry out banking business in Singapore.

Other than MBL, any Macquarie Group entity noted on this page is not an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). That entity's obligations do not represent deposits or other liabilities of MBL. MBL does not guarantee or otherwise provide assurance in respect of the obligations of that entity, unless noted otherwise.

Macquarie Bank Limited maintains Representative Offices in the states of Illinois, New York and Texas, but is not authorised to conduct banking business in the US.