Management of Mutual Fund
6. Calculation and announcement of net asset values (NAV)
6.1 Closed-end funds
6.2 Open-end funds
6.3 Mutual fund with investment in foreign assets
6.4 Mutual fund with a one-time investment strategy (Buy-and-Hold Funds)
6.5 Announcement of the NAV
6.1 Closed-end funds
(1) Calculate the NAV and investment unit value at the end of every business day.
(2) Announcement the NAV and investment unit value:
(2.1) For mutual fund which investment units are securities listed in the Stock Exchange, the NAV and the investment unit values as of the latest business day shall be announced and disclosed to the Stock Exchange within the following business day;
(2.2) For mutual fund which investment units are not securities listed in the Stock Exchange, the NAV and investment unit values as of the last business day of each month shall be announced within the following business day;
(3) The NAV and the investment unit value as of the closing date of unitholders register for dividend payment shall be announced on the following business day.
(4) The NAV and the investment unit value as of the business day before selling the investment units to increase authorized share capital shall be announced on the day of selling the investment units.
6.2 Open-end funds
(1) Calculate the NAV and investment unit value at the end of every business day.
(2) Calculate offering and redemption prices of the investment units at the end of every trading day.
(3) Announce the NAV and investment unit values:
(3.1) As of the closing date of the unitholders register for dividend payment within following business day;
(3.2) As of the latest trading day within the following business day;
(3.3) In the case of a mutual fund which does not trade on every business day :
(3.3.1) The NAV and the investment unit value as of the business day before the trading day shall be announced within the trading day except in the case of an institutional fund.
(3.3.2) In the case of a mutual fund of which trading days are more than one month apart, the NAV and investment unit value as of the last business day of each month shall be announced within the following business day;
(3.3.3) When any incidents occur that apparently have material impacts on the NAV or the investment unit values, the values as of the day of the events shall be announced within the following business day.
(4) Announce the offering and redemption prices of the latest trading day on the following business day.
6.3 Mutual fund with investment in foreign assets
The mutual fund with most of the investment in foreign countries are unable to calculate the NAV at the end of the trading day due to time zone differences. Therefore, the mutual fund management company may request from the SEC a relaxation on the requirement related to the timing for calculation and announcement of the NAV and the investment unit value, the offering and redemption prices. The SEC's relaxation guidelines are as follows:
(1) Calculate the NAV within the following one or two business days (T+1 or T+2) depending on the countries of the investment;
(2) Announce the NAV within the following two or three business days (T+2 or T+3) as the case may be.
6.4 Mutual fund with a one-time investment strategy (Buy-and-Hold Funds)
(1) Calculate and announce the NAV and the investment unit value at least on the day specified as following :
(1.1 ) Calculate at the end of every business day before the trading day, and announce the values within the trading day;
(1.2) Calculate at the end of every trading day and announce the values within the following business days;
(1.3) Calculate at the end of the last business day of each month and announce the values within the next business day;
(1.4) Calculate at the end of each day with any incidents occur that apparently have material impacts on the NAV or the investment unit value, and announce the values within the following business day.
(2) Calculate and announce the offering and redemption prices of the investment units at least as of the days specified below :
(2.1) Calculate at the end of every business day before the trading day and announce the values within the trading day;
(2.2) Calculate at the end of every trading day and announce the values within the following business day.
6.5 Announcement of the NAV
(1) The mutual fund supervisor shall approve the NAV and values;
(2) The announcement shall be made through all appropriate channels and by all means to ensure that the investment unitholders are informed on time to make use of the information for their investment decisions;
(3) In the case of an open-end fund, the information must be made available at office of the mutual fund management company /selling agents.