Fund Investment

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• Subscription fees:

The subscription fees = amount invested in domestic/offshore funds or other securities (exclusive of offshore bonds) * fee rate

(Note: amount invested in local or foreign fund or other securities + fee amount + Accrued Interest (if any) = subscription amount payable).

Subscription fees are collected in the same currency as the subscribed fund/security. Timing of subscription fee payment: the Trustor shall pay fees to the Trustee at the time when subscribing to local/foreign funds or securities.

• Trust management fees:

Trust management fees are collected only for three years after the date of subscription.

Calculation: amount redeemed × trust management fee rate × number of days held ÷ 365.

(Trustors are reminded that subscriptions made on or before September 30, 2007, will still be subject to the previous fee terms.)

• Conversion fees:

Conversion fees are collected on a per-account, per-transaction basis (in the event of a partial conversion, fees are charged for the amount converted). The Trustee may also collect fee shortfalls if any. These fees are calculated based on rates specified by the respective fund issuers, and are payable in one lump sum by the Trustor to the Trustee and fund issuer. Timing of conversion fee payment for monetary funds: if a Trustor initially subscribes to a monetary fund and requests to convert into an equity fund or a bond fund some time later, the Trustee will collect fees on the initial subscription and on the subsequent conversion. Fees will be collected in NTD or the original currency.

Calculation of initial conversion fees for monetary funds:

1. amount converted from fund A x fee rate for converting into fund B
2. conversion fee charged by the Trustee at NTD500 or equivalent foreign currency + additional fees charged by the fund issuer.

Timing of fee payment: the Trustee will deduct the above amount from Trustor’s deposit account when the conversion is executed. Subsequent conversions will be subject to conversion fees charged according to the Trustee’s policies. Small-sum subscriptions of equity or bond funds may not be converted into monetary funds.

• Channel service fees – at time of subscription:

Calculated by multiplying the applicable fee rate to the amount of entrusted capital. To be paid by counterparties or fund issuers to the Trustee at the time of subscription. If this service fee has already been listed in product description or fund prospectus, the counterparty/fund issuer will deduct this amount from the daily net asset value of the respective instruments.

• Channel service fees – for the holding period:

To be calculated by the Trustee by applying the fee rate to net asset values published by counterparties/fund issuers. This fee will be paid by counterparties/fund issuers to the Trustee. The method of payment may differ depending on the counterparties or fund managers involved, and may occur on a monthly, quarterly, semi-annual or annual basis. If this service fee has already been listed in product description or fund prospectus, then the counterparty/fund issuer will deduct this amount from the daily net asset value of the subscribed fund.

• Distribution Fee

This distribution fee will be collected by fund issuers according to their policies. They are deducted from funds’ net asset values, and are not collected by the Trustee.

If the Trustor issues a trade instruction and later cancels it before the cutoff time specified by the Trustee, the Trustee may collect a reasonable sum from the Trustor to cover its costs.

The Trustor understands and agrees that any compensation, fees, discounts or benefits of any kind that the Trustee receives from its trade counterparties in relation to the trust arrangement under this agreement (the special-purpose money trust) may be withheld by the Trustee as a form of remuneration for its trust services, to the extent permitted by law. When investing in structured instruments and overseas bonds, the Trustee may disclose the above remunerations it receives from counterparties in documents such as product descriptions and terms and conditions.

• Notes on non A share funds trading and fees

1. Should the Trustor choose to invest in non A share, no subscription fee will be collected by the Trustee at the time of subscription, according to the fund issuer’s policies. However, the fund issuer will collect a “deferred fee” at the time the Trustor redeems; this fee is calculated based on the length of the holding period and will be deducted from redemption proceeds. The “deferred fee” mentioned above is how fees are charged for non A share. The Trustor will be charged a “conditional deferred fee” only if the fund is redeemed before the agreed duration; the Trustor will be exempted of all fees if the investment is held beyond the agreed duration.
2. The Trustor acknowledges that investment in certain products, offshore non A share may be subject to Distribution Fees and “Shareholder Service Fees” in addition to the usual fund management fees, as specified in the prospectus. The abovementioned fees are deducted from the daily net asset value.

• Applicable Subscription Exchange Rate: The bank’s forex trading room calculates the relevant entrusted subscription by adding 2 pips to the Taipei forex broker’s trading price during operational hours (approximately 3:45 to 4:00 pm).
• Applicable Redemption Exchange Rate: After the bank completes the redemption with the fund company and the funds are credited to the bank, the bank, on behalf of the trustee, processes the redemption in batch mode. This is done using the bank’s published exchange rate plus 3 pips during operational hours (approximately 10:00 to 12:00 am).

• The net asset value is the actual price of a mutual fund. The calculation is derived by subtracting the various costs and fees incurred by the fund on that day (including related implicit costs and trading fees) from the total assets value of the fund. This value is then divided by the total number of fund units issued on that day to determine the net asset value per unit.
• Net Asset Value (NAV) = (Total Fund Assets – Total Relevant Costs and Fees) / Total Fund Units
• Note: Implicit costs include performance fees, distribution fees, custody bank fees, management fees, and other expenses, etc.

1. Fund Investment is not covered by deposit insurance and is not within the scope of deposit insurance protection. Fund investments come with investment risks that could lead to a loss of the principal amount. While the bank carries out its obligations as Trustee, it does not guarantee the preservation or non-loss of the entrusted funds or the minimum return. Risks associated with investment include credit risk, market risk, capital loss, exchange rate loss, as well as fund dissolution, liquidation, transfer, merger, etc. Investors are responsible for these risks, and in the worst-case scenario, the maximum loss could be the entire invested principal. Trustors/beneficiaries assume gains and losses.
2. The fact that funds have been approved for offering by the Financial Supervisory Commission does not imply that they are risk-free. The fund managers’ past performance should not be construed as a guarantee on minimum returns. Except for its duties as a prudent manager, the fund managers’ is not liable for the gains or losses of the funds it offers, and nor does it guarantee minimum returns. The Trustor is advised to fully comprehend the prospectus before subscribing.
3. Different entry timings can lead to varying investment performance, and past performance does not guarantee future results.
4. The distribution yield of a fund does not represent its return rate, and past distribution yields do not guarantee future distribution yields. The net asset value of a fund may fluctuate due to market factors. The costs associated with the fund (including distribution fees for offshore funds) are disclosed in the fund’s prospectus or investor notification and can be inquired about at public information observation stations or offshore fund information observation stations.
5. In accordance with applicable laws, the bank will withhold taxes as required during payment. If tax laws change in the future, the customer’s tax liability will be processed according to relevant legal provisions. The investment returns may not be the same as the initial expectations due to potential changes in tax laws.

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