Errors occurred in the real-time estimated net asset value (iNAV) of about 160 domestic exchange-traded funds (ETFs) as the 'fund administrator' responsible for calculating the fund's base price double-counted dividends.
According to the financial investment industry on the 29th, the iNAV of 163 ETFs was calculated to be about 1% higher than the actual value on the morning of the previous day, resulting in trading at overvalued prices.
The iNAV, an estimate of net asset value, is important when trading ETFs in real time. Investors purchased each ETF at prices higher than their normal value, and asset management companies are currently assessing the extent of the damage.
The fund administrator, Korea Fund Partners, reportedly entered dividends repeatedly while reorganizing their system.
With the introduction of an advanced dividend policy, companies were divided between those paying quarterly dividends and those paying year-end dividends as before, causing system confusion. The error was fully resolved around 12:10 PM the previous day.
The asset management industry is currently assessing the scale of the damage.
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