The Fund has its policy to invest at least 80% of NAV abroad. The majority of the Fund's investment, on the average of at least 80% of NAV in each accounting period, shall be invested in SPDR Gold Trust ("foreign fund") which is established and managed by World Gold Trust Services, LLC, which is wholly-owned by the World Gold Council, a non-for-profit association registered under Swiss law. The foreign fund is listed for trading on the New York Stock Exchange and the Singapore Stock Exchange.
The Fund may invest in Thailand as to serve the operational purpose or pending for foreign investment or secure the liquidity of the Fund or any other purposes in such manner. Investment in Thailand shall be deposits, money market papers and other types of investment allowed by the SEC Laws. The Fund may invest in derivative as to hedge from the foreign exchange risk at least 90%.
Nevertheless, the Fund shall not invest is Structured Note.
In normal circumstances, the Fund shall invest at least 80% of NAV abroad. However, it's not applicable during the first 15 days from the inception date and the last 15 days before the liquidation of the Fund. Furthermore, during the period that the investment environment abroad is not favorable, for example, when the market or economy is highly volatile or there is a case of natural disaster or abnormal circumstances; there is significant changes in laws and regulations; or the foreign investment quota is temporally unavailable, resulting in a delay of investing and the Fund could not invest up to 80% of NAV, in such cases KAsset shall report the incidence to the SEC.
In the case that KAsset considers that SPDR Gold Trust is no longer suitable for the Fund's investment, ie. its return is constantly or significantly lower than other peers; the foreign fund evidently breaches the regulation or its investment scheme, referring to its regulator's opinion; or changes in regulations resulting as a burden of the Fund, KAsset reserves its right to consider switching the Fund's investment to other funds with similar investment policy, such switching shall deem as permitted by the unit holders.
Exchange rate risk hedging level