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.
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.
MKIF is a registered fund under the Financial Investment Service and Capital Market Act (FSCMA), and is established as an infrastructure fund under the Act on Public Private Partnerships in Infrastructure (PPI Act).
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.
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.
Hana Investor Service Co., Ltd.
Korea Securities Finance Corp.
As MKIF shares are listed on the Korea Exchange (KRX), trading of shares must be conducted through a KRX registered stockbroker. The KRX website www.krx.co.kr can provide further details on KRX registered stockbrokers.
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.
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.
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.
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|
* 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.)
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..
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.