The Taiwan Fund, Inc. Announces Selection of New Investment Adviser

Rhea-AI Summary

The Taiwan Fund, Inc. (NYSE: TWN) has selected Nomura Asset Management U.S.A. Inc. as its new Investment Adviser, pending stockholder approval at a special meeting on September 6, 2022. Nomura, with total assets under management of US$463.4 billion, aims to enhance the Fund's investment performance through a team-based, growth-oriented strategy. The proposed agreement includes a base fee of 0.60% and a performance adjustment based on returns relative to the TAIEX Total Return Index, aligning interests with shareholders. The Fund focuses on long-term capital appreciation through investments in Taiwan-listed equities.

Positive

• Nomura has extensive experience managing equity mandates in Taiwan since 1998.
• The proposed fee structure aligns Nomura's interests with the Fund's shareholders.

Negative

• None.

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. 

View original content:https://www.prnewswire.com/news-releases/the-taiwan-fund-inc-announces-selection-of-new-investment-adviser-301594682.html

SOURCE The Taiwan Fund, Inc.

FAQ

What is the significance of the Taiwan Fund selecting Nomura as its new Investment Adviser?

The selection aims to improve investment performance and align management interests with shareholders through a performance-adjusted fee structure.

When will shareholders vote on the new Investment Adviser's proposal for the Taiwan Fund?

Shareholders will vote on September 6, 2022, during a special meeting.

What is the fee structure proposed for Nomura as the Investment Adviser to the Taiwan Fund?

The proposed fee is a base of 0.60% of average daily net assets, with additional performance adjustments based on fund performance relative to the TAIEX Total Return Index.

How much total assets does Nomura Asset Management manage?

As of June 30, 2022, Nomura Asset Management managed US$463.4 billion in total assets.