Important matter

Important matter on investment in “Unit Trusts&rdquo”

• Net value of a Unit Trust
  The net value of a Unit Trust is its actual value. On each day of trading, the fund management company will compute the total asset value of the fund on the day based on quotations of the underlying assets contained in the investment portfolios, including stocks, bonds, cash, other securities or assets, at a specific point of time in the centralized market. After deducting the applicable expense from the total asset value the amount will be divided by the outstanding units of the fund on the same day for the net asset value of the fund or the net value of the fund.
• Asset Size of a Unit Trust (Fund)
  The asset size of the fund refers to the total assets contained in the fund. In general, fund asset size does not significantly affect the performance of the fund unless such size is too small and hence insufficient to invest in a complete portfolio for diversification of risk.
• Performance of a Unit Trust (Fund)
  The performance of a Unit Trust or fund can be directly assessed by the Return of Investment of the fund and the equation is shown below:
  

  

  
  Return of Investment = New Value of the fund when subscribed

Transactions fees of different Unit Trusts

Fees will be charged on the subscription or holding of funds, including subscription fee, switch fee, management fee, custodian fee, marketing service charge and other related fees. Most subscription fees will be paid separately. In investment in B-Share Unit Trusts, no subscription fee will be charged at the time of subscription and investors will pay a Cumulated Deferred Service Charge (CDSC) at the time of redemption. The rate of such fee varies with the duration of holding. In general, the rate of such deferred charge will incrementally decrease annually. In addition, a specific percentage of a B-Share Unit Trust net value will be paid out as annual management fee and such fee will be shown in the net value of the fund. Applicable fees (including the expenses for distribution) are disclosed in the Fund Prospectus and Investor Brochure. Investors may search the Market Observation Post System site: http://mops.tse.com.tw or the Fund Clearance site: www.fundclear.com.tw for further information.

• Quotations
  The trading of funds is based on the net asset value of the funds in quotation. Quotation of offshore funds could be made in the form of “single-price quotation” and “dual-price quotation”. In the former quotation, the ask price is the same as the bid price. In the latter, there is a spread between ask price and bid price and we call them ask price and bid price.
• Standards for the calculation of net asset value of fund and fund units
  Where investors may conduct trade at the bank on a day which is a holiday (or non-trading day) in the offshore exchanges, issuing place or place of registration, to the extent that no quotation can be made, or on a day of trading that no quotation can be made because of other factors, fund management company/securities dealers may move forward to the next business day for the calculation of the net asset value of the fund. The standards for fund management companies in calculating the net asset value of the fund and the fund unit and related rules are outlined in the Prospectus.
• Fund Settlement Clause
  Details on the fund settlement clause are stated in the Prospectus.
• Short-term Trading
  For the protection of the rights and privileges of the majority of investors, many fund companies declare their scope of short-term trading in the Prospectus. The unit trust distributors are requested to provide short-term trade information to fund company by regulation requirement at present. If the fund company identifies the investment of particular investor as a short-term trade, it reserves the right to decline or prohibit such investor in subscription, conversion and redemption of fund units and will debt a fixed percentage of redemption amount as redemption charge for this short-term trade. The fund companies will determine the short-term trade definitions and redemption charge for each fund and disclose on Prospectus. For the protection of your rights and privileges, please refer to the Prospectus released by relevant fund companies.
• Notice on reading the Fund Factsheet
  Before making an investment decision, investors are urged to read the contents of the investments by the fund cautiously and thoroughly. The best way is to obtain the “Fund Factsheet” of individual funds. Information on the objects of investments, types of investments, investment objectives and profile of the fund (including the place of registration, date of establishment, investment advisor, sales agent, fund size and date of trade) will be provided therein. In addition, information on the performance of the fund, proportion in recent holdings of different stocks and the commentary of the fund managers will be updated regularly as reference for the investors. Investors have to bear in mind that: performance in the past does not guarantee ROI(Return of Investment??) in the future and is for reference only.
• Notice on reading the Prospectus
  A Prospectus usually contains information on the fund management company, the custodian bank; the fund’s investment objectives, investment strategy, investment limitations, and investment advisor; rules on the solicitation of funds (switch, redemption), related fees, important notices to fund unit holders, financial statements, disclaimers and notes on short-swing trading.

Unit Trust Related Information

• Unit Trust
• Ways to invest
• Risk and Profit

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