Investment Objective and Strategies
The Fund’s investment objective is to seek long-term capital appreciation through investment primarily in equity securities listed on the Taiwan Stock Exchange ("TSE") in the Republic of China (“ROC”). This objective may not be changed without the approval of a majority of the Fund's outstanding voting securities.
The Fund is diversified and intends to continue to diversify its assets over a broad spectrum of the ROC economy. This includes, as conditions warrant from time to time, cement, chemicals and plastics, construction, electrical/electronics, finance, banking, food, textiles, glass, rubber, pulp and paper, metal products and machinery, retailing, and tourism. The Fund will invest more than 25% of its total assets in the semi-conductor industry
In selecting companies for investment, the Fund's portfolio manager will consider overall growth prospects, competitive position in the respective industry, technology, research and development, productivity, labor costs, raw material costs and sources, profit margins, return on investment, capital resources, government regulation, management, and other factors.
The Fund's equity investments will generally be predominantly in common stocks, but investments may also be made in non-common stocks, for example preferred stocks (several of which are presently listed on the TSE) and in convertible debentures listed on the TSE. It is anticipated that at least 80% of the Fund's assets will be invested in Taiwanese companies. Taiwan companies include: (i) companies for which the principal securities trading market is Taiwan; (ii) companies for which the principal trading market is outside of Taiwan, or in companies organized outside of Taiwan that in both cases derive at least 50% of their revenues from good or services sold or produced, or have at least 50% of their assets, in Taiwan; or (iii) companies organized in Taiwan.
Investment in the Fund involves certain risks which are not normally associated with investments in the United States, including a high degree of stock price volatility in the ROC securities markets. See the Fund's prospectus for a full discussion of these risks.