SOURCE: The Greater China Fund
NEW YORK, NY and PHILADELPHIA, PA--(Marketwire - Sep 18, 2012) - The Greater China Fund, Inc. (NYSE: GCH) (the "Fund") and Aberdeen Asset Management Asia Limited ("Aberdeen") jointly announced today that the Fund's Board of Directors has voted unanimously to approve and to recommend that stockholders of the Fund approve an Investment Management Agreement (the "Proposed Agreement") between the Fund and Aberdeen Asset Management Asia Limited ("Aberdeen Asia").
The Proposed Agreement, if approved by stockholders, will replace the Fund's existing interim investment management agreement pursuant to which the Fund's current interim investment manager, Baring Asset Management (Asia) Ltd. ("Baring"), manages the investment of the Fund's assets.
Under the Proposed Agreement, the total management fees paid by the Fund would be a monthly fee at an annual rate of 1.00% of the Fund's average weekly net assets up to $100 million, 0.90% of such net assets from $100 million up to $200 million, and 0.75% of such net assets in excess of $200 million. Based on current Fund size, these blended fees would be lower than the fees paid to Baring under the existing interim investment management agreement.
The Fund's investment objective is to seek long-term capital appreciation. The Fund seeks to achieve its investment objective by investing primarily in listed equity securities of China companies.
Considerations by the Board
"One of the key reasons the Fund's Board selected Aberdeen Asset Management is the depth and experience of Aberdeen's investment management team, which has been investing in the greater China region for over two decades," says Edward Y. Baker, Chairman of the Board for The Greater China Fund, Inc. Mr. Baker also said that "an important consideration by the Board in the selection of Aberdeen was the fact that closed-end management investment companies have formed part of Aberdeen's business since its inception and remain an important element of its client base in the United States and globally". Aberdeen overall (in the U.S. and abroad) currently manages 30 closed-end management investment companies with $12.3 billion in assets under management as of June 30, 2012. Mr. Baker also said "that the Board looked very favorably at Aberdeen's Investor Relations support in the closed-end fund secondary market. In today's fast-paced investment environment, providing shareholders with regular and insightful communications, as well as timely, accessible information, is more important than ever."
About Aberdeen Asset Management Asia Limited
Aberdeen Asset Management Asia Limited is a subsidiary of Aberdeen Asset Management PLC ("Aberdeen"), an independent asset manager founded in 1983 and listed on the London Stock Exchange. Today, Aberdeen has more than 1,800 staff including over 500 investment professionals in 31 offices in 23 companies. Aberdeen is a pure stand-alone asset management company and manages more than $286 billion in assets as of June 30, 2012.
For more information on the Fund, including the most recent month-end performance, visit www.greaterchinafund.com or call 1-877-FUND-GCH (1-877-386-3424).