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ROC-CAEDF

Rules and Regulations for Management and Investments

The guiding principle for the management and investment of the ROC-Central American Economic Development Fund (the Fund) is to maximize the return on investment of the Fund in a safe and secured manner.

In order to avoid exchange risks, the Fund shall always be invested in US dollar denominated instruments including:

  1. Bank deposits;
  2. Bonds and/or treasury bills issued by central governments;.
  3. Short-term notes , medium and/or long-term bonds issued by financial institutions or corporations;
  4. Publicly listed money market fund; and
  5. Other profit-bearing investments approved by the Board of Directors of the Fund.

The aforementioned deposits and instruments shall fulfill the following criteria:

(1) Bank deposits shall be deposited either with financial institutions in the ROC with a net worth over NTD$20 billion, or in the world's largest 100 banks ranked by capital.
(2) Unless otherwise agreed by the Board, instruments mentioned in (2) and
(3) of paragraph 2 shall be limited to those ranked as "A" equivalent or above by Moody's Investors Service Inc. or Standard & Poor's Corporation. The aggregated amount invested in corporate bonds shall not exceed 40% of net worth of the Fund at any time.

The investment portfolio of the ROC-Central American Economic Development Fund shall be managed by the management of the Fund with advisory services provided by a professional asset management company, or managed directly by a reputable asset management company. A qualified asset management company must be ranked A (or equivalent) or above by Moody's Investors Service Inc. or Standard & Poor's Corporation.

Statements on the investment of the Fund, including various investment items, amount,initial cost, and current market price, shall be submitted to the Board for its review semi-annually. In addition, an annual investment performance report shall be submitted to the Board for its review.

The Secretary of the Fund is authorized to sign on behalf of the Fund all necessary documents for making investments.

These rules and regulations, and any amendment thereto, shall become affective upon approval of the Board of the Fund.

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  • Date:2010/12/15