1. Disclosure of management status of the asset management company

 
he asset management company shall make a disclosure on its organization, human resources, financial statements, capital raising and operation, and management indicators such as soundness, profitability, productivity, etc. For specific reports, see the table below.

< Type of Reports >

Classification

Period

Financial Statements

Every year

Regular Report

Every quarter

Management Regular Disclosure

Every year/every quarter

Management Ad-hoc Disclosure

Ad-hoc

 
 
2. Disclosures and reports regarding funds
 

   AMAK discloses the NAV per unit and the composition of the portfolio of all contractual and corporate type funds on a weekly basis. Also, the NAVs of selected major funds are published in certain daily economic newspapers.

A. Prospectus

   At the time of sale and purchase of investment funds, the management company must distribute to the investors a prospectus that contains the following information:

  • investment background, objective, strategy for the year, and risks;
  • management performance of the respective fund;
  • all costs related to the management and administration including the management fee;
  • establishment and redemption policy;
  • valuation of fund assets and calculation of NAV;
  • information about the registered fund managers;
  • policy on dividend and repayment;
  • tax on income;
  • summary of relevant companies (the Manager, the Trustee, the Distributors, and the Administration Companies to which the SIC entrust general administration); and,
  • details of principal protection schemes, if any.

B. Portfolio Management Report

   For equity investment trusts, the management company is required to provide the following information within one month from the final day of a trust's accounting period, the date of maturity, or the date of termination:
  • summary of portfolio management changes for the year;
  • information about the assets, liabilities, initial amount of trust assets, NAV, and gains/losses during the period;
  • fair market price on the current valuation date for all stocks, bonds, money market instruments, or any other investments and their individual proportion of the total trust assets;
  • total number of subscriptions for and the numbers of redemption of units during the period;
  • type, number, and current market price for all stocks held in the trust on the current valuation date; and
  • total number and amount of stocks purchased and sold during the period.

C. Investment Performance

   Since April 1998, AMAK has released information as detailed below in "Weekly Unit Trust" for all funds managed by all management companies in compliance with the Act.
  1. Equity investment trusts are classified based on the proportion of equities as required by the terms of the trust deed and are divided into Income, Growth, Income-Growth, High-Growth, and International.
  2. Bond investment trusts are classified based on the redemption fee schedule and are divided into MMF, Short-term, Medium-term, Long-term, and International.

D. Performance Ranking

   Assuming normal distribution of fund performance of different types, the funds are ranked as AAA, AA, A, BBB, or BB in descending order of performance.
 
 
3. Ad-hoc disclosure
 

   An asset management company of an investment trust or an investment company shall publicly disclose the matters falling under one of the following subparagraphs without delay after occurrence of any causes thereof as prescribed by the Presidential Decree:

  1. Changes in fund managers;
  2. Decision on delaying or resuming redemption and reasons thereof;
  3. In case where such bad assets as described by the Presidential Decree occur, the details thereof and a write-off ratio thereof;
  4. Details of resolutions by a general meeting of beneficiaries or a general meeting of stockholders; or
  5. Other matters as prescribed by the Presidential Decree.
 
 
4. Others
 

   A trustee company and a custodian shall prepare a trustee company report or a custodian report that states the matters within two months from the closing of an accounting period of an indirect investment vehicle and furnish such a report to indirect investors as prescribed by the Presidential Decree. It should contains matters such as major modifications of the terms and conditions of a trust deed or the articles of incorporation of an investment company; changes in fund manager; details of a resolution by a general meeting of beneficiaries or a general meeting of stockholders, etc. The reports shall be submitted to the FSC and AMAK. An asset management company of an investment trust or an investment company shall, when exercising voting rights of stocks forming indirect investment property, disclose to the public the matters concerning whether it has exercised its voting rights.