​​Management of Mutual Fund

13. Conversion of a Closed-End to an Open-End fund

(1) The conversion from a closed-end fund to an open-end fund is originally specified in the scheme prior to the first offering of the investment units, or a resolution of approval is obtained from the unitholders with majority resolution.

(2) The mutual fund management company shall submit a request for amendments to the particulars of the register information and prepare a prospectus of the open-end fund.

(3) The mutual fund management company shall provide an option for unitholders of a closed-end mutual fund to exit from the closed-end mutual fund, (if unitholders opt to exit) the mutual fund shall comply with the following rules:

3.1 Pay for the investment units based on the NAV as of the business day before the effective date of the conversion into an open-end mutual fund;

3.2 Make the payment for the investment units within five business days from the effective date of the conversion into an open-end mutual fund (the first date of being an open-end mutual fund is counted as day one)

(4) The mutual fund management company may not arrange for the option for the unitholders of the closed-end fund to exit from the fund under the following conditions:

4.1 The mutual fund is converted upon the expiration of the original scheme;

4.2 The unitholders received the investment capital and the returns upon expiration of the closed-end fund as specified in the original scheme;

​4.3 The fund was converted to an open-end mutual fund by a resolution of the unitholders.