BOSTON, July 27,
2022 /PRNewswire/ -- The Board of Directors (the
"Board") of The Taiwan Fund, Inc. (the "Fund") (NYSE: TWN), today
announced that it has selected Nomura Asset Management
U.S.A. Inc. ("Nomura") to become
its Investment Adviser, subject to stockholder
approval. Nomura is a U.S.-based firm registered as an
investment adviser with the Securities and Exchange Commission. The
firm is a wholly owned subsidiary of Nomura Asset Management Co.,
Ltd. ("NAM Tokyo"), which is itself wholly owned by Nomura
Holdings, Inc., a Japanese public company focused on the financial
services industry. As of June 30,
2022, the total assets under management of NAM Tokyo and its
investment advisory subsidiaries and affiliates (the NAM Group)
amounted to US$463.4
billion. NAM Tokyo's subsidiary, Nomura Asset
Management Taiwan Ltd., had total assets under management at
June 30, 2022 of US$18.9 billion including US$5.6 billion invested in Taiwan equity mandates. Based on a search for
and review of qualified investment managers conducted with the
assistance of a consultant, the Board concluded that Nomura
possesses the capabilities and skill to provide the Fund the best
opportunity to continue to achieve superior investment
performance. Nomura's investment process and philosophy
centers on bottom-up stock picking with a team-based strategy
that is broad across capitalizations and is growth-oriented.
Nomura has a dedicated 12 person investment team based in
Taiwan specializing in the local
equity market. This investment team has been continuously managing
equity mandates on behalf of Taiwan government entities since 1998. The
Nomura Taiwan Superior Equity Fund, a mutual fund offered in
Taiwan, which has an investment
strategy similar to the one proposed for the Fund, has ranked in
the first quartile of its Lipper Global – Taiwan Equity universe
over the two-and three-year periods ended March 31, 2022 and in the second quartile of its
Lipper Global – Taiwan Equity universe for the one-year period
ended March 31, 2022.
The proposed Investment Advisory Agreement between the Fund and
Nomura (the "Proposed Agreement") is subject to approval by the
Fund's stockholders at a Special Meeting of the Fund's stockholders
scheduled for September 6, 2022. The
Proposed Agreement provides for a base fee of 0.60% of the Fund's
average daily net assets. The base fee will be subject to a
performance adjustment that will add or subtract from the base fee
0.05% for each percentage point by which the total return of the
Fund exceeds, or is exceeded by, the return of the TAIEX Total
Return Index during each fiscal year of the Fund, with a maximum
adjustment of +/- 0.25%. The Fund believes that this performance
adjustment aligns the interest of the proposed Investment Adviser
with the Fund's shareholders as it rewards the Investment Adviser
for the Fund's relative outperformance against the Taiwan market while as importantly reducing
the Investment Adviser's fees during any periods of relative
underperformance, which will have the effect of decreasing the
Fund's overall expense ratio during these periods.
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 1-877-217-9502.
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SOURCE The Taiwan Fund, Inc.