An error occurred in the process of calculating the net asset value (iNAV) of domestic equity exchange-traded funds (ETFs), causing a significant discrepancy between the actual value and market prices of 163 ETF items. This confusion was attributed to the failure to properly reflect the change in the ex-dividend date, which had been fixed at the end of December for many corporations, after the regular shareholders' meeting.
Asset management companies rushed to assess investor damage. This involves checking cases where ETFs were purchased at prices higher than their actual value.
According to the financial investment industry on the 28th, a situation arose where the discrepancy rate of 163 ETFs investing in high-dividend domestic stocks widened significantly. This means that the net worth of the ETFs and market prices diverged greatly. The issue was resolved around noon, but it is estimated that there may have been investors who purchased the ETFs at prices higher than their actual value before that.
The large-scale iNAV calculation error in domestic equity ETFs occurred because the fund administration company double-counted the dividends. The company responsible for the fund pricing calculations is Korea Fund Partners (formerly Mirae Asset Fund Partners), which handles the calculation of funds for Mirae Asset Global Investments, Hanwha Asset Management, KB Asset Management, NH-Amundi Asset Management, and Kiwoom Asset Management. It is currently separated from the Mirae Asset Group and has 30% equity held by Mirae Asset Consulting.
Korea Fund Partners stated, "Since the introduction of the dividends modernization policy, the ex-dividend date for listed companies has changed from the previous one, and there was an error in the system where dividends were double-counted during the maintenance process," adding, "The issue was corrected in the afternoon, and the iNAV was changed back to normal."
The ex-dividend date for listed companies used to be at the end of December. However, at the beginning of this year, financial authorities modernized the dividend policy, allowing investors to know the dividend status and amounts before making investments, which enabled companies to set the ex-dividend date after the shareholders' meeting. As a result, many listed companies changed the ex-dividend date to the end of March, following the regular shareholders' meeting. The issue arose because this change was not properly reflected in the system.
Asset managers are assessing the scale of damage caused by the iNAV calculation error. An asset management company official noted, "This is the first time such a large-scale error in the iNAV calculation of ETFs has occurred," adding, "Once we assess the scale of the damage and confirm the losses, discussions on compensation will also take place."