​​Management of Mutual Fund

21. Additional rules for guaranteed funds

(1) In an arrangement with a new guarantor, the qualification of the new guarantor  and  terms of  guarantee agreement shall not be inferior to the previous one, except in any of the following cases:

(1.1) The mutual fund management company appoints a new guarantor by obtain special  resolution of the unitholders ;

(1.2) The mutual fund management company reserved the rights in the scheme to dissolve the guaranteed fund or to withdraw the guarantee.

(2) Where the arrangement with a new guarantor will cause fees to increase by more than 25% of the original rate for the latest guarantee period, the mutual fund management company can make such an arrangement after having obtained special resolution of the unitholders.

(3) If the mutual fund management company is unable to obtain specialresolution of the unitholders for an  arrangement with a new guarantor; or the expenses on the arrangement with a new guarantor is higher than the  benefits for the fund; or the mutual fund management company fails to appoint a new guarantor, the mutual fund management company shall take any of the following actions:

(3.1) Dissolve the funds;

​(3.2) Withdraw the guarantee.