The process for buying or selling a closed-end fund, such as The Taiwan Fund, Inc., is the same as for buying or selling stocks. You can buy through all types of brokerage firms, including full-service brokers, discount brokers, and online brokers. Your brokerage firm may charge a commission for the services provided which may include guidance on how the Fund fits into your portfolio. Your broker can quote you the current market price of the shares, and you can decide whether you want to pay the prevailing price by submitting a market order or set your own price through a limit order. You can also chose to invest via the Dividend Reinvestment and Cash Purchase Plan (the “Plan”).
The “Plan” offers shareholders of the “Fund” a prompt and simple way to reinvest their dividends and capital gains distributions in shares of the Fund. The Fund will distribute to shareholders, at least annually, substantially all of its net income and expects to distribute annually its net realized capital gains. Computershare Trust Company, N.A. acts as Plan Administrator for shareholders in administering the Plan. The Plan also allows you to make optional cash investments in Fund shares through the Plan Administrator.
If you own shares in your own name, you can elect to participate directly in the Plan. If you own shares that are held in the name of a brokerage firm, bank, or other nominee, you should contact your nominee to arrange for them to participate on your behalf. Further Information on the Plan can be found in the frequently asked questions below.
The Dividend Reinvestment and Cash Purchase Plan (the “Plan”) offers shareholders of The Taiwan Fund, Inc. (the “Fund”) a prompt and simple way to reinvest their dividends and capital gains distributions in shares of the Fund. The Fund will distribute to shareholders, at least annually, substantially all of its net income and expects to distribute annually its net realized capital gains.
Computershare Trust Company, N.A. (the “Plan Administrator”) acts as Plan Administrator for shareholders in administering the Plan. You are also able to make make optional cash investments in Fund shares through the Plan Administrator.
If you own shares in your own name, you can elect to participate directly in the Plan. If you own shares that are held in the name of a brokerage firm, bank, or other nominee, you should contact your nominee to arrange for them to participate on your behalf.
The Plan has two components: reinvestment of dividends and capital gains distributions, and a voluntary cash purchase feature.
Reinvestment of dividends and capital gains distributions
If you choose to participate in the Plan, your dividends and capital gains distributions will be promptly invested for you, automatically increasing your holdings in the Fund. If the Fund declares a dividend or capital gains distribution payable in cash, you will automatically receive shares purchased by the Plan Administrator on the open market. You will be charged a per share fee (currently $0.05) incurred with respect to the Administrator’s open market purchases.
If a distribution is declared which is payable in shares or cash, at the option of the shareholder, and, if on the valuation date (generally the payable date), the market price of shares is equal to or exceeds their net asset value, the Fund will issue new shares to you at the greater of the following: (a) net asset value per share or (b) 95% of the market price per share. If the market price per share on the valuation date is less than the net asset value per share, the Fund will issue new shares to you at the market price per share on the valuation date.
All reinvestments are in full and fractional shares, carried to three decimal places. In the case of foreign (non-U.S.) shareholders, reinvestment will be made net of applicable withholding tax.
Voluntary cash purchase option
Plan participants have the option of making investments in Fund shares through the Plan Administrator. You may invest any amount from $100 to $3,000 semi-annually. The Plan Administrator will purchase shares for you on the New York Stock Exchange or otherwise on the open market on or about February 15 and August 15.
If you hold shares in your own name, you should deal directly with the Plan Administrator. Checks (in U.S. dollars and drawn on a U.S. bank) should be made payable to “Computershare.” The Plan Administrator will not accept cash, traveler’s checks, money orders, or third party checks. We suggest you send your check, along with a completed transaction form which is attached to each statement you receive, to the following address to be received at least two business days before the investment date: Computershare, c/o The Taiwan Fund, Inc. at P.O. Box 43006 Providence RI 02940-3078. The Plan Administrator will return any cash payments received more than 35 (thirty-five) days prior to February 15 or August 15, and you will not receive interest on uninvested cash payments.
If your check is returned unpaid for any reason, the Administrator will consider the request for investment of such funds null and void, and shall immediately remove those shares from your account. The Administrator shall be entitled to sell shares to satisfy any uncollected amount plus any applicable fees. If the net proceeds of the sale are insufficient to satisfy the balance of any uncollected amounts, the Administrator shall be entitled to sell such additional shares from your account as may be necessary to satisfy the uncollected balance.
If you own shares that are held in the name of a brokerage firm, bank, or other nominee, you should contact your nominee to arrange for them to participate in the cash purchase option on your behalf.
For purchases from the reinvestment of dividends and capital gains distributions, you will pay a pro rata portion of brokerage commissions payable with respect to purchases of shares by the Plan Administrator on the open market.
You will also be charged a per-share fee (currently $0.05) incurred with respect to the Plan Administrator’s open market purchases in connection with the reinvestment of dividends and capital gains distributions.
Brokerage charges for purchasing shares through the Plan are expected to be less than the usual brokerage charges for individual transactions because the Plan Administrator will purchase stock for all participants in blocks, resulting in lower commissions for each individual participant. The Plan Administrator’s transaction fees for handling capital gains distributions or income dividends will be paid by the Fund.
For purchases from voluntary cash payments, participants are charged a transaction fee (currently $0.75 per investment) and a per-share fee (currently $0.05) for each voluntary cash investment. Per-share fees include any brokage commissions the Plan Administrator is required to pay.
Brokerage commissions and service fees, if any, will be deducted from amounts to be invested.
You will receive tax information annually for your personal records and to help you prepare your federal income tax return. The automatic reinvestment of dividends and capital gains distributions does not relieve you of any income tax which may be payable on dividends or distributions.
For further information as to the tax consequences of participating in the Plan, you should consult with your tax advisers.
If the Fund issues shares upon reinvestment of a dividend or capital gains distribution, for U.S. federal income tax purposes, the amount reportable in respect of the reinvested amount of the dividend or distribution will be the fair market value of the shares received as of the payment date, which will be reportable as ordinary dividend income and/or long term capital gains. The shares will have a tax basis equal to such fair market value, and the holding period for the shares will begin on the day after the payment date. State, local, and foreign taxes may also be applicable.
You may withdraw from the Plan without penalty at any time by by calling the Plan Administrator at 1-800-426-5523; by accessing your Plan account at the Plan Administrator's website; or by written notice to the Plan Administrator.
If you withdraw, you will receive, without charge, stock certificates issued in your name for all full shares and a check for any fractional share (valued at the market value of the shares at the time of withdrawal or termination), less any applicable fees.
You may also request that the Plan Administrator sell your shares and send you the proceeds, less a transaction fee of $2.50 and a per share fee of $0.15. The per share fee includes any brokerage commissions the Plan Administrator is required to pay.
Alternatively, you may also request that the Plan Administrator move your whole shares to the Direct Registration System, which would allow you to maintain ownership of those whole shares in book entry form on the records of the Fund.
All sale requests having an anticipated market value of $100,000.00 or more are expected to be submitted in written form. In addition, all sale requests within thirty (30) days of an address change are expected to be submitted in written form.
If you hold shares in your own name, please address all notices, correspondence, questions, or other communications regarding the Plan to: Computershare, c/o The Taiwan Fund, Inc. at P.O. Box 43006 Providence RI 02940-3078; by telephone at 1-800-426-5523; or through the Internet.
If your shares are not held in your name, you should contact your brokerage firm, bank, or other nominee for more information and to arrange for them to participate in the Plan on your behalf.
Either the Fund or the Plan Agent may amend or terminate the Plan. Except in the case of amendments necessary or appropriate to comply with applicable law, rules, or policies or a regulatory authority, participants will be mailed written notice at least 30 days before the effective date of any amendment. In the case of termination, participants will be mailed written notice at least 30 days before the record date of any dividend or capital gains distribution by the Fund.
Regulatory Information
The information contained in this site pertaining to The Taiwan Fund, Inc. is not directed, nor is it intended for distribution to, or use by, persons in any jurisdiction in which the Fund’s shares are not available. Dissemination of information regarding the Fund is not permitted.
The information contained herein should not be construed as an offer to sell or as a solicitation of an offer to buy any security nor shall any such security be offered or sold to any person in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful under the securities or other laws of such jurisdiction.
The Fund files reports and other information with the U.S. Securities and Exchange Commission (“SEC”). These reports and other information can be inspected, without charge, and copied, for a fee, at the public reference facilities maintained by the SEC at 100 F Street, N.E., Washington, D.C.20549.
The Fund’s filings are also available to the public on the SEC’s Internet site. The reports and other information concerning the Fund may also be inspected at the offices of the New York Stock Exchange.
No representation is made that the information contained herein is accurate or complete.
Nomura Asset Management U.S.A. Inc. is an SEC registered investment adviser. Registration with the SEC does not imply any specific or certain level of skill or training.
Important Information
Portfolio holdings are subject to change daily.
It should not be assumed that any of the securities transactions or holdings discussed here were or will prove to be profitable, or that the investment recommendations or decisions Nomura Asset Management U.S.A. Inc. (“NAMUSA”) makes in the future will be profitable or will equal the investment performance of the securities discussed herein.
Investing in the Fund involves certain considerations in addition to the risks normally associated with making investments in securities. The value of the shares issued by the Fund, and the income from them, may go down as well as up and there can be no assurance that upon sale, or otherwise, investors will receive back the amount originally invested. There can be no assurance that you will receive comparable performance returns. Movements in foreign exchange rates may have a separate effect, unfavorable as well as favorable, on the gain or loss otherwise experienced on an investment. Past performance is not a guide to future returns. Accordingly, the Fund is only suitable for investment by investors who are able and willing to withstand the total loss of their investment. In particular, prospective investors should consider the following risks:
- Discretionary investment is not risk free. The past operating performance does not guarantee a minimum return for the discretionary investment fund. Apart from exercising the duty of care of a prudent adviser, NAMUSA will not be responsible for the profit or loss of the Fund, nor guarantee a minimum return.
- It should be noted that investment in the Fund is only suitable for sophisticated investors who are aware of the risk of investing in Taiwan and should be regarded as long term. Funds that invest in one country carry a higher degree of risk than those with portfolios diversified across a number of markets.
- Investment in the securities of smaller and unquoted companies can involve greater risk than is customarily associated with investment in larger, more established, companies. In particular, smaller companies often have limited product lines, markets, or financial resources and their management may be dependent on a smaller number of key individuals. In addition, the market for stock in smaller companies is often less liquid than that for stock in larger companies, bringing with it potential difficulties in acquiring, valuing, and disposing of such stock. Proper information for determining their value, or the risks to which they are exposed, may not be available.
- Investments within emerging markets such as Taiwan can be of higher risk. Many emerging markets, and the companies quoted on their stock exchanges, are exposed to the risks of political, social, and religious instability, expropriation of assets or nationalization, rapid rates of inflation, high interest rates, currency depreciation, and fluctuations and changes in taxation which may affect the Fund’s income and the value of its investments.
- The marketability of quoted shares may be limited due to foreign investment restrictions, wide dealing spreads, exchange controls, foreign ownership restrictions, the restricted opening of stock exchanges, and a narrow range of investors. Trading volume may be lower than on more developed stock markets, and equities are less liquid. Volatility of prices can also be greater than in more developed stock markets. The infrastructure for clearing, settlement, and registration on the primary and secondary markets may be undeveloped. Under certain circumstances, there may be delays in settling transactions in some of the markets.
The Taiwan Fund, Inc., c/o State Street Bank and Trust Company, 1 Lincoln Street, P.O. Box 5049, Boston, MA, 02111.
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