Unaudited Semi-Annual Report and Financial Statements For the period from 21 November 2013 (date of incorporation) to 30 June 2014

Unaudited Semi-Annual Report and Financial Statements For the period from 21 November 2013 (date of incorporation) to 30 June 2014 KIM INVESTMENT FUNDS Investment company with variable capital with multiple sub-funds No subscriptions should be made on the basis of the financial report alone. Subscriptions should only be made on the basis of the current Prospectus supplemented by the KIIDs, the latest Annual Report and the latest Semi-Annual Report, if published thereafter. Unless otherwise indicated, all defined terms used herein shall have the same meaning as set out in the Prospectus of the Fund. R.C.S. B 181321

Table of Contents Directors and Administration 2 General Information 3 Statement of Net Assets 4 Statement of Operations 5 Statement of Changes in Net Assets 6 Statement of Changes in Shares Outstanding 7 Statistical Information 8 Schedule of Investments and Other Net Assets KIM Investment Funds - KIM Korea Navigator Fund 9 KIM Investment Funds - KIVAM Korea Value Fund 10 Notes to the Financial Statements 11 Page

Directors and Administration Registered Office: Board of Directors of the Fund: 49, Avenue J.F. Kennedy, L-1855 Luxembourg, Grand Duchy of Luxembourg. Young II Kim, CIO, Korea Investment Management Co., Ltd., 27-1, Yeouido-dong, Yeongdeungpo-gu, Seoul, Korea (Chairman of the Board). Chai Won Lee, CIO and Executive Managing Director, Korea Investment Value Asset Management Co, Ltd., 27-1, Yeouidodong, Yeongdeungpo-gu, Seoul, Korea. Steve Bernat, Head of Distribution Services, Lemanik Asset Management, 41, Op Bierg, L-8217 Mamer, Grand Duchy of Luxembourg. Management Company: Lemanik Asset Management S.A. 41 Op Bierg, L-8217 Mamer, Grand Duchy of Luxembourg. Depositary: State Street Bank Luxembourg S.A. 49, Avenue J.F Kennedy, L-1855 Luxembourg, Grand Duchy of Luxembourg. Administrator, Domiciliary, Paying Agent, Transfer Agent And Registrar Agent: Investment Managers: State Street Bank Luxembourg S.A. 49, Avenue J.F Kennedy, L-1855 Luxembourg, Grand Duchy of Luxembourg. Korea Investment Management Co., Ltd. 27 1, Yeouido-dong, Yeongdeungpo-gu, Seoul, Korea. Korea Investment Value Asset Management Co., Ltd. 27 1, Yeouido-dong, Yeongdeungpo-gu, Seoul, Korea. Auditor of The Fund: Luxembourg Legal Adviser: PricewaterhouseCoopers Luxembourg 400, Route d Esch, L-1014 Luxembourg, Grand Duchy of Luxembourg. Elvinger, Hoss & Prussen 2, Place Winston Churchill, L-2014 Luxembourg, Grand Duchy of Luxembourg. 2

General Information KIM Investment Funds is an umbrella investment Fund with variable capital (société d'investissement à capital variable) incorporated under the form of a société anonyme in the Grand Duchy of Luxembourg. It qualifies as an undertaking for collective investment in transferable securities ("UCITS") under Part I of the 2010 Law. The Funds financial year ends on 31 December of each year. The unaudited financial statements contained herein present the financial information of the 2 following Sub-Funds as at 30 June 2014: Sub-Fund Launch Date KIM Korea Navigator Fund 21 November 2013 KIVAM Korea Value Fund 18 December 2013 The Annual General Meeting of Shareholders of the Company is held on the third Wednesday of April in each year at 10 a.m.. The first Annual General Meeting will be held in 2015. The Sub-Funds are managed by Korea Investment Management Co., Ltd and Korea Investment Value Asset Management Co., Ltd. The registered office of both Investment Managers is 27 1, Yeouido-dong, Yeongdeungpo-gu, Seoul, Korea. Copies of the prospectus and the financial statements of the Company are available by writing to the Company at the following address: State Street Bank Luxembourg S.A. 49, Avenue J.F. Kennedy, L-1855 Luxembourg. 3

Statement of Net Assets as at 30 June 2014 (Unaudited) KIM Korea Navigator Fund * KIVAM Korea Value Fund ** Combined Notes USD USD USD Assets Current Assets Market value of investments 2.2 47,249,039 59,022,861 106,271,900 Cash at bank 2.1 1,527,499 3,848,303 5,375,802 Receivable for investments sold 384,329 622,439 1,006,768 Other receivables 26,900 28,540 55,440 Total Assets 49,187,767 63,522,143 112,709,910 Liabilities Current Liabilities Payable for investments purchased 264,239 892,829 1,157,068 Other payables and accrued expenses 11,729 12,532 24,261 Total Liabilities 275,968 905,361 1,181,329 NET ASSETS 48,911,799 62,616,782 111,528,581 Number of shares outstanding Class I (USD) 443 1,039 Class I (EUR) 2,200 2,175 Class X (USD) 444,468 553,593 Net asset value per share Class I (USD) 110.71 109.66 Class I (EUR) 148.65 151.03 Class X (USD) 109.20 112.31 * Sub-Fund launched on 21 November 2013 ** Sub-Fund launched on 18 December 2013 4

Statement of Operations for the period from 21 November 2013 (date of incorporation) to 30 June 2014 (Unaudited) KIM Korea Navigator Fund * KIVAM Korea Value Fund ** Combined Notes USD USD USD Income Net dividend income 152,910 131,475 284,385 Bank interest 54 147 201 Total Income 152,964 131,622 284,586 Expenses Management Company fees 4.1 16,065 16,679 32,744 Depositary fees 4.4 17,817 15,764 33,581 Administrator fees 4.3 10,715 9,481 20,196 Investment Manager fees 4.2 998 1,097 2,095 Professional fees 7,477 7,057 14,534 Taxe d abonnement 3 1,942 2,308 4,250 Other expenses 15,291 14,147 29,438 Total Expenses 70,305 66,533 136,838 Net Investment Income (loss) 82,659 65,089 147,748 Net realised gain/(loss) on investments (441,344) 1,463,232 1,021,888 Net realised gain/(loss) on foreign currencies 394,965 383,486 778,451 Net change in unrealised appreciation/(depreciation) on investments 3,517,838 2,376,621 5,894,459 Net change in unrealised appreciation/(depreciation) on foreign currencies 11,023 17,163 28,186 Net Increase/(decrease) in net assets resulting from operations 3,565,141 4,305,591 7,870,732 * Sub-Fund launched on 21 November 2013 ** Sub-Fund launched on 18 December 2013 5

Statement of Changes in Net Assets for the period from 21 November 2013 (date of incorporation) to 30 June 2014 (Unaudited) KIM Korea Navigator Fund * KIVAM Korea Value Fund ** Combined USD USD USD Net assets at beginning of the period - - - Net investment income/(loss) 82,659 65,089 147,748 Net realised gain/(loss) on investments (441,344) 1,463,232 1,021,888 Net realised gain/(loss) on foreign currencies 394,965 383,486 778,451 Net realised profit/(loss) for the period 36,280 1,911,807 1,948,087 Proceeds from subscription of shares 45,390,947 58,311,191 103,702,138 Payments for redemption of shares (44,289) - (44,289) Net proceeds from shares transactions 45,346,658 58,311,191 103,657,849 Net change in unrealised appreciation/(depreciation) on investments 3,517,838 2,376,621 5,894,459 Net change in unrealised appreciation/(depreciation) on foreign currencies 11,023 17,163 28,186 Net assets at the end of the period 48,911,799 62,616,782 111,528,581 * Sub-Fund launched on 21 November 2013 ** Sub-Fund launched on 18 December 2013 6

Statement of Changes in Shares Outstanding For the period from 21 November 2013 (date of inception) to 30 June 2014 (Unaudited) outstanding as at 21 November 2013 (date of incorporation) Number of shares issued Number of shares redeemed Number of shares outstanding as at 30 June 2014 (Unaudited) KIM Korea Navigator Fund Class I (USD) e) - 443-443 Class I (EUR) c) - 2,200-2,200 Class X (USD) a) - 444,918 450 444,468 KIVAM Korea Value Fund Class I (USD) d) - 1,039-1,039 Class I (EUR) c) - 2,175-2,175 Class X (USD) b) - 553,593-553,593 a) Launched on 21 November 2013 b) Launched on 18 December 2013 c) Launched on 20 January 2014 d) Launched on 17 March 2014 e) Launched on 26 March 2014 7

Statistical Information As at 30 June 2014 (Unaudited) As at 30 June 2014 (Unaudited) As at 31 December 2013 As at 31 December 2012 KIM Korea Navigator Fund Net assets 49,034 - - Class I (USD) Net asset value per share 110.71 - - Net assets 327,036 - - Class I (EUR) Net asset value per share 148.65 - - Net assets 48,535,729 - - Class X (USD) Net asset value per share 109.20 - - KIVAM Korea Value Fund Net assets 113,894 - - Class I (USD) Net asset value per share 109.66 - - Net assets 328,497 - - Class I (EUR) Net asset value per share 151.03 - - Net assets 62,174,390 - - Class X (USD) Net asset value per share 112.31 - - a) Launched on 21 November 2013 b) Launched on 18 December 2013 c) Launched on 20 January 2014 d) Launched on 17 March 2014 e) Launched on 26 March 2014 8

KIM INVESTMENT FUNDS - KIM Korea Navigator Fund Statement of Investments As at 30 June 2014 expressed in USD (Unaudited) Investments Currency Shares Market value in USD % of net assets Transferable securities and money market instruments admitted to official exchange listing or dealt in on another regulated market. Common Stocks South Korea Amorepacific Corp KRW 2,611 3,932,758 8.04 CJ CheilJedang Corp KRW 100 34,048 0.07 Daelim Industrial Co. Ltd KRW 3,560 296,608 0.61 DGB Financial Group, Inc. KRW 14,140 211,723 0.43 GS Engineering & Construction Corp KRW 11,028 367,309 0.75 GS Holdings KRW 40,302 1,796,422 3.67 Hana Tour Service, Inc. KRW 1,517 101,653 0.21 HMC Investment Securities Co. Ltd KRW 15,890 160,188 0.33 Hyundai Glovis Co. Ltd KRW 1,976 526,321 1.08 Hyundai Mobis KRW 4,924 1,382,107 2.82 Hyundai Motor Co. KRW 18,498 4,195,781 8.58 Iljin Power Co. Ltd KRW 2,562 14,940 0.03 Industrial Bank Of Korea KRW 109,250 1,457,674 2.98 JB Financial Group Co. Ltd KRW 133,092 974,710 1.99 KCC Engineering & Construction Co. Ltd KRW 2,700 23,456 0.05 Kia Motors Corp KRW 40,531 2,267,301 4.63 Korea Electric Power Corp KRW 6,379 235,162 0.48 Korea Zinc Co. Ltd KRW 3,987 1,564,379 3.20 KT&G Corp KRW 24,335 2,152,582 4.40 LG Chem Ltd KRW 2,503 732,248 1.50 LG Corp KRW 30,679 1,895,076 3.87 LG Display Co. Ltd KRW 108,170 3,399,690 6.95 LG Electronics, Inc. KRW 60,047 4,409,460 9.02 LG Life Sciences Ltd KRW 2,780 96,165 0.20 LG Uplus Corp KRW 232,262 2,116,481 4.33 Lotte Chilsung Beverage Co. Ltd KRW 267 463,912 0.95 NAVER Corp KRW 2,813 2,321,462 4.75 Nongshim Co. Ltd KRW 2,989 843,407 1.72 Samsung C&T Corp KRW 64 4,719 0.01 Samsung Electro-Mechanics Co. Ltd KRW 3,898 224,603 0.46 Samsung Electronics Co. Ltd KRW 2,434 3,180,221 6.50 Samsung Fire & Marine Insurance Co. Ltd KRW 6,663 1,695,713 3.47 Samsung Heavy Industries Co. Ltd KRW 13,500 360,916 0.74 SeAH Steel Corp KRW 1,182 133,761 0.27 Shinhan Financial Group Co. Ltd KRW 11,820 547,309 1.12 Silicon Works Co. Ltd KRW 25,244 622,492 1.27 SK Holdings Co. Ltd KRW 10,290 1,856,024 3.79 SK Hynix, Inc. KRW 7,010 336,366 0.69 Young Poong Precision Corp KRW 29,407 313,892 0.64 Total for South Korea 47,249,039 96.60 Total for Common Stocks 47,249,039 96.60 Total for transferable securities and money market instruments admitted to official exchange listing or dealt in on another regulated market. 47,249,039 96.60 Total Investments in securities 47,249,039 96.60 Other Assets/(Liabilities) 1,662,760 3.40 NET ASSETS 48,911,799 100.00 9

KIM INVESTMENT FUNDS - KIVAM Korea Value Fund Statement of Investments As at 30 June 2014 expressed in USD (Unaudited) Market value in USD % of net assets Investments Currency Shares Transferable securities and money market instruments admitted to official exchange listing or dealt in on another regulated market. Common Stocks South Korea BH Co. Ltd KRW 85,743 669,470 1.07 BYC Co. Ltd KRW 1,493 339,385 0.53 CJ Corp KRW 8,820 1,220,399 1.95 Daewon San Up Co. Ltd KRW 27,500 293,536 0.47 Daewoong Co. Ltd KRW 12,522 491,326 0.78 Dong Ah Tire & Rubber Co. Ltd KRW 32,030 645,792 1.03 Dong-Il Corp KRW 8,488 658,537 1.05 Dongwon Development Co. Ltd KRW 32,930 803,885 1.28 E-Mart Co. Ltd KRW 4,054 929,559 1.48 Hana Financial Group, Inc. KRW 51,130 1,895,014 3.03 Hankuk Paper Manufacturing Co. Ltd KRW 37,680 1,005,495 1.61 Hanmi Semiconductor Co. Ltd KRW 52,000 732,358 1.17 Hannong Chemicals, Inc. KRW 50,250 217,032 0.35 Hanshin Construction KRW 58,097 737,840 1.18 Hyundai Mobis KRW 5,480 1,538,170 2.46 Hyundai Motor Co. KRW 13,937 3,161,239 5.05 IDIS Holdings Co. Ltd KRW 44,000 628,385 1.00 Innox Corp KRW 40,320 649,551 1.04 Intelligent Digital Integrated Securities Co. Ltd KRW 63,851 933,974 1.49 KB Financial Group, Inc. KRW 54,250 1,887,330 3.01 KG Chemical Corp KRW 39,548 607,799 0.97 Koh Young Technology, Inc. KRW 63,530 1,516,356 2.42 Korea Electric Power Corp KRW 39,406 1,452,702 2.32 Korean Reinsurance Co. KRW 151,549 1,565,217 2.50 KT Corp KRW 52,870 1,596,342 2.55 Kyung Dong Navien Co. Ltd KRW 37,273 944,903 1.51 KyungDong City Gas Co. Ltd KRW 9,704 1,126,922 1.80 LF Corp KRW 35,700 975,593 1.56 Lotte Shopping Co. Ltd KRW 5,378 1,639,764 2.62 Meritz Financial Group, Inc. KRW 79,900 593,051 0.95 Meritz Fire & Marine Insurance Co. Ltd KRW 152,576 1,862,338 2.97 National Plastic Co. KRW 151,400 995,068 1.59 Nexen Corp KRW 23,000 1,961,751 3.13 NICE Holdings Co. Ltd KRW 99,891 1,239,012 1.98 NICE Total Cash Management Co. Ltd KRW 325,000 799,812 1.28 Nong Shim Holdings Co. Ltd KRW 7,840 906,582 1.45 Pang Rim Co. Ltd KRW 41,750 635,452 1.01 POSCO KRW 4,753 1,428,061 2.28 Sam Jung Pulp Co. Ltd KRW 17,055 712,170 1.14 Samsung Electronics Co. Ltd KRW 4,565 5,964,548 9.53 Samsung Life Insurance Co. Ltd KRW 6,200 625,025 1.00 SAVEZONE I&C CORP KRW 93,230 602,613 0.96 Sebang Co. Ltd KRW 38,700 766,886 1.22 Shindaeyang Paper Co. Ltd KRW 23,690 664,950 1.06 Shin-heung Machine Co. Ltd KRW 31,200 363,866 0.58 SK Holdings Co. Ltd KRW 10,366 1,869,732 2.99 SK Telecom Co. Ltd KRW 3,850 899,906 1.44 Soulbrain Co. Ltd KRW 18,573 633,296 1.01 Sunjin Co. Ltd KRW 32,560 1,172,971 1.87 Taekwang Industrial Co. Ltd KRW 888 1,108,464 1.77 Woori Finance Holdings Co. Ltd KRW 115,100 1,370,780 2.19 Youngone Holdings Co. Ltd KRW 12,522 982,652 1.57 Total for South Korea 59,022,861 94.26 Total for Common Stocks 59,022,861 94.26 Total for transferable securities and money market instruments admitted to official exchange listing or dealt in on another regulated market. 59,022,861 94.26 Total Investments in securities 59,022,861 94.26 Other Assets/(Liabilities) 3,593,921 5.74 NET ASSETS 62,616,782 100.00 10

Notes to the financial statements as at 30 June 2014 (Unaudited) Note 1 - General information 1.1 The Company KIM Investment Funds is an umbrella investment Fund with variable capital (société d'investissement à capital variable) incorporated under the form of a société anonyme in the Grand Duchy of Luxembourg. It qualifies as an undertaking for collective investment in transferable securities ("UCITS") under Part I of the 2010 Law. 1.2 The Fund As at 30 June 2014, the Fund has two active Sub-Funds: KIM Korea Navigator Fund KIVAM Korea Value Fund 1.3 Investment Objectives and Policy The investment objective of KIM Korea Navigator Fund is to provide long-term capital appreciation by principally investing in equity securities quoted on the stock exchanges of Korea. The Sub-Fund may also invest in other transferable securities such as bonds, promissory notes, Certificates of Deposits (CD), to earn additional interest income. The Fund strives to earn capital gains by investing primarily in stocks with growth potentials. The Investment Manager will seek to add value with a stock selection based on bottom-up approach and a buy and hold strategy in terms of investment. The investment objective of the KIVAM Korea Value Fund is to achieve superior long-term capital appreciation by investing in equity securities listed in Korea. The Fund may also invest in convertible securities and similar instruments to earn additional interest income. 1.4 The Shares KIM Korea Navigator Fund KIM Korea Navigator Fund currently offers three Class of Shares: Share class name Launch Date Class I (USD) Accumulating shares 26 March 2014 Class I (EUR) Accumulating Shares 20 January 2014 Class X (USD) Accumulating Shares 21 November 2013 Class X is available to certain investors, which at the time the relevant subscription order is received, are clients or affiliates of Investment Manager. KIVAM Korea Value Fund KIM Korea Value Fund currently offers three Class of Shares: Share class name Launch Date Class I (USD) Accumulating shares 17 March 2014 Class I (EUR) Accumulating Shares 20 January 2014 Class X (USD) Accumulating Shares 18 December 2013 Class X is available to certain investors, which at the time the relevant subscription order is received, are clients or affiliates of Investment Manager. Note 2 - Accounting policies The accounts of the Fund have been prepared in accordance with the Luxembourg regulations relating to UCITS. The significant accounting policies used detail as follows: 2.1 Cash and other liquid assets Cash and other liquid assets are valued at their face value. 2.2 Valuation of investments in securities The value of securities (including a share or unit in a closed-ended undertaking for collective investment and in an exchange traded fund) and/or financial derivative instruments which are listed and with a price quoted on any official stock exchange or traded on any other organized market at the closing price. Where such securities or other assets are quoted or dealt in or on more than one stock exchange or other organised markets, the Board of Directors shall select the principal of such stock exchanges or markets for such purposes; 11

Notes to the financial statements as at 30 June 2014 (Unaudited) (continued) Note 2 - Accounting policies (continued) 2.2 Valuation of investments in securities (continued) The shares or units in open-ended undertakings for collective investment, which do not have a price quotation on a Regulated Market, will be valued at the actual net asset value for such shares or units as of the relevant Valuation Day, failing which they shall be valued at the last available net asset value which is calculated prior to such Valuation Day. Note 3 - Taxation of the Fund The following summaries are based on the Fund's understanding of the law and practice in force in Luxembourg at the date of this prospectus. As shareholders will be resident for tax purposes in various jurisdictions, no attempt has been made in this Prospectus to summarise the tax consequences for every jurisdiction which may be applicable to investors subscribing for, purchasing, holding, exchanging, selling or redeeming shares. These consequences will vary in accordance with the law and practice in force in the relevant shareholder's country of citizenship, residence, domicile or incorporation and with his or her personal circumstances. Hence no shareholder should solely rely on the following guidance when determining the tax consequences of investing in the Company's shares. It is the responsibility of shareholders or prospective shareholders to inform themselves of the possible tax consequences of subscribing for, purchasing, holding, exchanging, selling or redeeming shares in the light of the laws of the country relevant to their citizenship, residence or domicile and of their personal circumstances and to take appropriate professional advice regarding exchange control or other legal restrictions relating thereto. Shareholders and prospective investors also should bear in mind that levels and bases of taxation, as well as tax authority practices, may change and that such changes may have, depending on the countries, retrospective effect. LUXEMBOURG The Fund is not liable to any Luxembourg tax on profits or income, nor are dividends paid by the Fund liable to any Luxembourg withholding tax. The Fund is, however, liable in Luxembourg to a subscription tax of 0.05% per annum of its net asset value, such tax being payable quarterly on the basis of the value of the net assets of the Fund at the end of the relevant calendar quarter. This tax rate is reduced to 0.01% per annum for Classes of shares reserved to institutional investors within the meaning of Article 174 of the 2010 Law. In addition, the value of the Sub-Fund(s)' assets represented by units held in other Luxembourg undertaking for collective investment shall be exempt from this tax, provided such units have already been subject to this subscription tax. No stamp duty or other tax is payable in Luxembourg on the issue of shares. No Luxembourg tax is payable on the realised or unrealised capital appreciation of the assets of the Fund. Subject to the provisions of the Savings Directive and the Law, non-resident shareholders are not subject to any income, withholding, estate, inheritance or other taxes in Luxembourg. Note 4 - Significant agreements 4.1 Management Company fees In consideration for the management company services provided to the Fund, the Management Company is entitled to receive a management company fee of a percentage of the net assets of the relevant Class, as further detailed in the relevant Sub-Fund Particular (the "Management Company Fee"). Unless otherwise provided for in the relevant Sub-Fund Particular, this fee will be accrued on each Valuation Day and payable monthly in arrears out of the assets of the relevant Sub-Fund. The Management Company is entitled to receive a fee from the Class I (USD), the Class I (EUR) and the Class X (USD) Accumulating shares of up to 0.07% per annum per Sub-Fund (with a minimum of EUR 15,000 per sub-fund) As at 30 June 2014, there were USD 32,744 paid for management Company fees. 4.2 Investment Management/Advisory fees In consideration for the investment management/advisory services provided to the Company, the investment managers/advisers (if any) are entitled to receive from the Company any investment management/advisory fee of a percentage as further detailed in the relevant Sub-Fund Particulars. Class of Shares Class I (USD) Class I (EUR) Class X (USD) Investment Management fee Up to 0.8% Up to 0.8% 0% 4.3 Administrator fees For its services as Administration Agent, Registrar and Transfer Agent and unless otherwise agreed for a specific Sub-Fund, State Street Bank Luxembourg S.A receives an annual fee based upon a reducing scale, of up to 0.08%, depending upon the value of the Company s net assets, subject to a minimum annual central administration fee of EUR 48,000 per Sub-Fund. This fee is calculated and accrued on each Valuation Day and is payable by the Company monthly in arrears and as agreed from time to time in writing. The Fund has appointed State Street Bank Luxembourg S.A. (the Administrator ) as its Administrator, domiciliary, paying, registrar and transfer agent. 12

Notes to the financial statements as at 30 June 2014 (Unaudited) (continued) Note 4 - Significant agreements (continued) 4.4 Depositary fees For its services as Depositary, State Street Bank Luxembourg S.A. receives a fee for this service which can vary dependent upon the markets in which the assets of the Company are invested. This fee can range from 0.008% p.a. of the value of the assets of a Sub-Fund of the Company when safe kept in developed markets to 0.10% p.a. of the value of the assets of such Sub-Funds which are safe kept in emerging markets (excluding sub-custodian out-of pocket expenses). Trade Settlement is charged on a per transaction basis based on the countries in which the securities are settled. This fee can range from EUR10 to EUR65 per transaction. 4.5 Other charges and expenses The Company pays all brokerage and any other fees arising from transactions involving securities in the Company s portfolio, clearing, taxes and governmental duties and charges payable by the Company, and fees and expenses involved in registering and maintaining the authorisation in Luxembourg and elsewhere and the listing of the Company's shares (where applicable), cost and expenses for subscriptions to professional associations and other organisations in Luxembourg or in other jurisdiction where it may be registered for offer of its shares, which the Company will decide to join in its own interest and in that of its shareholders, the cost of publication of prices and costs relating to distribution of dividends, the remuneration of the Directors, if any, and their reasonable out-of-pocket expenses and its other operating expenses such as accounting and pricing costs, expenses for legal, auditing and other professional services relating to the management of the Company and of its Sub-Funds, costs of printing, translating, and publishing information for the shareholders and in particular the costs of printing, translating and distributing the periodic reports, as well as the Prospectuses, litigation and other recurring or non-recurring expenses. Any extraordinary expenses including, without limitation, litigation expenses and the full amount of any tax, levy, duty or similar charge and any unforeseen charges imposed on the Company or its assets will be borne by the Company. The costs and expenses for the formation of the Company and the initial issue of its shares will be borne by the first Sub-Funds of the Company (namely the KIM Korea Navigator Fund and the KIVAM Korea Value Fund) and amortized over a period not exceeding 5 years. Any additional Sub-Fund(s) which may be created in the future shall bear their own formation expenses to be amortized over a period not exceeding 5 years. Notwithstanding the foregoing, Korea Investment Management Co., Ltd. and Korea Investment Value Asset Management Co., Ltd may pay all or part of the set-up costs of the Company. 4.6 Transactions costs Transaction costs are incremental costs that are directly attributable to the acquisition, issue or disposal of a financial asset or financial liability. An incremental cost is one that would not have been incurred if the entity had not acquired, issued or disposed of the financial asset or liability. When a financial asset or financial liability is recognised initially, an entity shall measure it at its fair value through profit or loss plus, transaction costs that are directly attributable to the acquisition or issue of the financial asset or financial liability. Transaction costs on the purchase and sale of money market instruments, bonds, forward foreign exchange currency contracts and swaps are included in the purchase and sale price of the investment. Custody transaction costs include transaction costs paid to custodians and sub-custodians. Purchases and sales transaction costs include identifiable brokerage charges, commissions, transaction related taxes and other market charges. For the period ended 30 June 2014, the Sub-Fund s incurred transaction costs as follows: Purchase and sales transaction fees KIM Korea Navigator Fund (USD) KIVAM Korea Value Fund (USD) Combined USD 92,053.68 109,148.14 200,797.37 Note 5 Changes in the Schedule of Investments The list of movements in investments composition of each Sub-Fund of the Fund for the financial period may be obtained free of charge at the Company s registered office. 13