The Taiwan Fund, Inc. Announces Selection of JP Morgan Subsidiary as Investment Manager; Special Meeting of Stockholders: Adoption of Majority Voting for Directors and Discount Management Policy
NEW YORK, July 17, 2014 /PRNewswire/ -- The Taiwan Fund, Inc. (TWN) (the "Fund"), announced today that the Fund's Board of Directors has selected JF International Management Inc. ("JFIMI") to serve as the Fund's new investment manager to replace the Fund's existing investment management arrangement with Allianz Global Investors U.S. LLC ("AllianzGI"). JFIMI is an indirect wholly-owned subsidiary of JPMorgan Chase & Co. JFIMI will commence managing the Fund's portfolio under an interim investment management agreement (the "Interim Agreement") no later than July 22, 2014 and, subject to approval by the Fund's stockholders, will enter into an investment management agreement (the "Proposed Agreement") with the Fund.
The Fund will hold a Special Meeting of Stockholders on September 22, 2014 to approve the agreement with JFIMI. The record date for the Special Meeting will be July 31, 2014.
Under the Proposed Agreement, the total management fees paid by the Fund would be computed daily and payable monthly at an annual rate of (1) 0.90% of the Fund's average daily net assets for the first U.S. $150 million of the Fund's net assets, (2) 0.80% of the Fund's average daily net assets for the next U.S. $150 million of the Fund's net assets and (3) 0.70% of the Fund's average daily net assets in excess of U.S. $300 million. These fees would be at the same rates as the fees paid to the Fund's previous investment manager, Martin Currie, Inc. The Fund's investment management agreement with Martin Currie, Inc. terminated on February 22, 2014. JFIMI will not receive a fee under the terms of the Interim Agreement.
Majority Voting for Directors
The Fund's Board of Directors has also approved an amendment to the Fund's By-Laws to provide for the election of Directors by a majority of the votes cast at a Stockholders Meeting. The Fund's Directors are currently elected by a plurality vote.
Discount Management Policy
In addition, the Fund's Board of Directors has adopted a Discount Management Policy under which the Board will periodically review the level of the discount from net asset value at which the Fund's shares trade and in consultation with the Fund's stockholders will consider taking action to reduce the discount when appropriate in the best interest of the Fund and its stockholders. Also, with adoption of the Discount Management Policy the Board has determined not to implement the previously announced Managed Distribution Policy at this time.
The Fund is a diversified closed-end investment company, which seeks long term capital appreciation primarily through investments in equity securities listed on the Taiwan Stock Exchange. Shares of the Fund are listed on the New York Stock Exchange under the ticker symbol "TWN."
For additional information on the Fund, including information on the Fund's holdings, visit the Fund's website at www.thetaiwanfund.com or call 1-877-864-5056.
SOURCE The Taiwan Fund, Inc.
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