Regulations Governing Information to be Published in Prospectuses by Securities Investment Trust Enterprises Offering Securities Investment Trust Funds Article 13
The "fund investments" item shall include the following information:1. The fund's investment policies and scope. For a bond fund, clearly describe the management strategy for the weighted average duration of its asset portfolio and the positions held in fixed income securities.2. The decision-making process by which the SITE determines the use of the fund's assets for investment purposes, and the name, major work experience, educational background, and discretion of the current fund manager, and names and individual terms of service of the previous fund managers of the given fund for the most recent 3 years. If the fund manager also manages other funds, disclose the names of those other funds and the measures adopted to prevent conflict of interest.3. If for the use of fund assets the SITE delegates any of the management functions of the fund to a third party, indicate the status of the delegation as well as the professional competence of the appointed management institution with respect to the delegated management function(s).4. If for the use of fund assets the SITE hires an offshore investment consulting company to provide investment consulting or advisory services, indicate the professional competence of the offshore investment consulting company with respect to the provision of fund consulting or advisory services.5. Restrictions on the use of the assets of the fund.6. Principles and methods for handling the exercise of voting rights when the fund participates in the shareholders meetings of stock-issuing companies.7. Principles and methods for handling the exercise of voting rights when a fund participates in the meetings of beneficial owners of funds held by this fund.8. If the fund invests in foreign or overseas regions, disclosure the following information:A. The economic environment in each main region/country of investment, with a brief description of the following:a. Overview of the economic development and of each major industry sector.b. Exchange control and outward and inward fund remittance regulations.c. The highest and lowest figures for the exchange rate of the local currency against the US dollar for the most recent 3 years, and changes therein over time.B. Any main securities market of investment, with a brief description of the following:a. An overview of the issuing and trading markets for the most recent 2 years (Tables 1 and 2).b. The market turnover rate and price-to-earnings ratio for the most recent 2 years (Table 3).c. The quality of market information disclosure (including timeliness and comprehensiveness).d. How securities are exchanged or traded.C. If the fund invests in foreign or overseas securitization products or emerging industries, provide an overview of the underlying investments or industry sectors on the foreign or overseas market for the most recent 2 years.D. If the SITE conducts transactions to hedge the risks associated with the foreign currency receipts and disbursements of the fund, clearly state the hedging strategies.E. If the fund invests in a foreign market, the SITE shall state the principles and methods for coordinating the fund's attendance at the meetings of shareholders (or beneficial owners) of the issuing company of any foreign stock (or fund) in which the fund invests.9. If the fund is of any of the following types, include further statements as follows:A. Principal protection fund:a. The nature of the instruments to which the relevant investments are linked.b. The set parameters of the fund, including the participation rate and investment duration, with a notation of when the actual participation rate is determined and how beneficial owners are notified.c. For a capital protected fund without a guarantor, include a statement that the fund is not guaranteed by a guarantor, but achieves the function of principal protection through the use of various investment tools.d. For a capital protected fund, state the control mechanisms for achieving principal protection upon disposal of fund assets to meet the early redemption requests by beneficial owners and at maturity.B. Index fund or passive ETF:a. How the index is constructed and the operating strategies used by the management company to track, simulate, or replicate the performance of the index, including an indication of the portfolio rebalancing strategies, and, when the fund invests in a representative sample of securities in the index, of the sampling and operating strategies used so that the sample would closely reflect the overall characteristics of the index.b. A comparison that shows the performance difference between the fund and the benchmark index, with a clear indication of the definitions and calculation formulas for such comparison.c. If the component securities of the underlying index include both stocks and bonds, the index compilation rules shall specify the proportion of allocation of each type of component security.C. Umbrella fund. Describe the investment scope of each sub-fund and their main distinctive features, and compare their differences and similarities. For required information that is common to all sub-funds, the information need not be repeated, but instead a note may be used indicating that the information is the same for all sub-funds; for required information that is different for each sub-fund, the information shall be presented separately and their differences compared.D. Fund denominated in a foreign currency. State the currency in which the fund is denominated and that all receipts and payments of the subscription and redemption prices are made in that currency.E. Active ETF: If performance indicators are set, explain the characteristics of the indicators and the differences between the fund's performance and the performance indicator performance in terms of investment strategy and features, and also state a comparison of the difference in performance between the fund and the performance indicators, and specify in the comparison method the definitions and calculation formula used.The term "main region/country of investment" and "main securities market of investment" as used respectively in subparagraph 8, items (1) and (2) of the preceding paragraph refers to any geographic region or country, or any foreign or overseas securities exchange market, as the case may be, in which the fund actually invests 10 percent or more of its net asset value as of the end of the month preceding the prospectus printing date. Notwithstanding the foregoing, if the combined total of investments in all such regions/countries or securities exchange markets is less than 50 percent of the net asset value, the disclosure of the information on the "main region/country of investment" or "main securities market of investment" shall instead include a list of regions/countries or securities exchange markets in which the fund actual invests, arranged in descending order of investment percentage, that cumulatively account for 50 percent or more of the fund's total investments.If no figure is available for the actual investment amount of the fund under the preceding paragraph, the SITE may instead use its projected figures.