The Taiwan Fund of Boston has announced that the China Development Industrial Bank plans to sell all or part of its interest in China Securities Investment Trust, the fund's investment adviser.
China Development Industrial Bank owns a 52.87 percent interest in China Securities Investment Trust of Taipei, Taiwan, according to The Taiwan Fund. The number of shares China Development Industrial Bank will sell is being negotiated, according to The Taiwan Fund. However, if more than 25 percent of the voting shares of China Securities are transferred, the advisory contract between the Fund and China Securities would immediately be terminated, according to The Taiwan Fund. The fund would then have to seek director and shareholder approval for a new investment adviser, according to the fund.
The Taiwan Fund is a closed-end fund which seeks long term capital appreciation. At least 75 percent of the fund's assets are invested in equity securities listed on the Taiwan Stock Exchange. Shares of the fund, which are primarily for U.S. investors seeking to participate in the Taiwan economy, are listed on the New York Stock Exchange. The fund, which opened in December 1986, had US$241.9 million in assets as of Feb. 23.