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.