Detail Content
Private Funds or Provident Funds
2. Management of private funds or provident funds
2.1 Disclosure of Information
After a private fund management agreement has been executed, the private fund management company shall disclose the following information to its client:
(1) Assessments of performance results of the private fund;
(2) The name of the custodian;
(3) Investments and performance results of the private fund;
(4) Material changes in the private fund;
(5) Information about the investments and any conflicts of interest;
(6) Any other information about the private fund to protect the client's interest.
Nevertheless, the provisions shall not apply to Government Pension Fund and Social Security Fund.
2.2 Upon expiration of a private fund management agreement :
(1) The private fund management company shall deliver securities and assets of the private fund to clients or the custodian within the period mutually agreed upon by the private fund management company and the clients;
(2) In the case of management of a provident fund, the private fund management company shall deliver the securities and assets as soon as possible.
2.3 Management fees
For management fees, the rules for general mutual fund shall apply as follows:
(1) A fixed rate, or a percentage rate of NAV or net asset value of the mutual fund;
(2) A performance based management fee rate
2.4 Proxy voting at shareholders' meetings on clients' behalf
Types of Funds
| Proxy Voting
|
|
| Assigned
| Not assigned
|
Private Funds
| The private fund management company to exercise the voting rights on the client's behalf, the company shall act as follows: 1) Exercise voting rights at a meeting of the shareholders in matters that may significantly affect the fund's benefit; 2) Disclose to the clients the details of the practice and the actual course of action concerning the exercise of voting rights at a shareholders' meeting.
| The management company
to exercise the voting rights on the client’s behalf, the private fund management
company may advise on the exercise of voting rights to the client.
|
Provident Funds
| The private fund
management company to exercise voting rights on the client’s behalf, the private
fund management company shall comply with the same rules for private funds and inform
the client of the action in an annual report.
| The private fund
management company to vote on the client’s behalf, the private fund management
company shall give advice on exercise of voting rights to the provident fund
committee or request the provident fund committee to delegate its voting power
to the private fund management company.
|
2.5 Preparation and submission of reports to the SEC.
Preparation and
Submission of Reports
| Private Funds
| Provident Funds
|
A monthly report on the
status and investments of the fund
| Within the 20th day of
the following month
| Within the 20th day of
the following month
|
A monthly report on the invested securities and assets
| - | Within the 20th day of the following month
|
A monthly report on income, expenses, and changes
in the employee contributions and employer contributions
| -
| Within the 20th day of the following month
|
A quarterly report of each fund
| -
| Within the 20th day of the month following the last
month of each quarter
|
Financial statements and audit reports
| -
| Within 150 days from the
end of each annual accounting period and make the documents available at the fund
offices
|