NEW YORK, April 24, 2019 /PRNewswire/ -- The China Fund, Inc. (the "Fund") (NYSE: CHN) announced today that its Board of Directors (the "Board") has signed agreements covering Fund Administration, Fund Accounting, Custodial Services and Securities Lending with Brown Brothers Harriman & Co ("BBH") that are planned to commence on or about July 1, 2019, following an orderly transition from the present provider. BBH, a privately held financial services institution with eighteen offices worldwide, has been a leading solutions provider to global investors for over 200 years and will provide all cross-border custody, accounting, administration and securities lending support services to the Fund. This change of provider is a direct result of the Board of Directors' review of the Fund's service providers, which was initiated in 2018 following stockholders' election of the newest members of the Board.
This change in the Fund's primary service provider is expected to result in considerable cost savings to the Fund. A comparative analysis conducted by the Board over a three-month trading period towards the end of calendar 2018 indicated that the annualized savings from all services combined, based on actual transaction activity for that period, will be very significant. It is intended that further details of all such cost savings achieved as a result of the Board's service provider review will be expanded in the upcoming interim report to stockholders.
Following a final director retirement in March, the Board determined to reduce its size to three members as from April 1st, 2019. As planned, Director Rich Silver ceased serving as the Board's Interim Chairman effective April 15th and simultaneously the Board elected Director Julian Reid, who brings 50 years' experience in the financial services industry primarily across Asia and China but also with considerable experience in the investment company sector in both the US and worldwide, as the Board's Chair. The Board elected Director Rich Silver, who has more than 45 years of industry experience most particularly in the areas of accounting, audit and mid- and back-office operations, as Chair of the Audit, Valuation and Compliance Committee, and Director Lin Coughlin, who has over 20 years of leadership experience in the mutual funds industry, as the Chair of the Contracts Committee.
For additional information kindly refer to the Fund's web site, thechinafund.com, or feel free to make contact as above at any time.
The China Fund, Inc. is a non-diversified, closed-end investment company. The Fund seeks long-term capital appreciation through investing primarily in equity securities listed on the stock markets of mainland China and Hong Kong. Its shares are traded on the New York Stock Exchange under the symbol "CHN."
Matthews Asia is the Fund's investment manager. Investment in closed-end funds involves risks. Additional risks are associated with international investing, such as currency fluctuation, government regulations, economic changes and differences in liquidity, which may increase the volatility of your investment. Foreign security markets generally exhibit greater price volatility and are less liquid than the U.S. market. Additionally, this Fund focuses its investments in certain geographical regions, thereby increasing its vulnerability to developments in that region. All of these factors potentially subject the Fund's shares to greater price volatility. The NAV of the Fund will fluctuate with the value of the underlying securities. Closed-end funds trade on their market value, not NAV, and closed-end funds often trade at a discount to their NAV.
The Fund's daily New York Stock Exchange closing market price and NAV per share, as well as other information, including updated portfolio statistics and performance are available at www.thechinafund.com or by calling the Fund's shareholder servicing agent.
Statements made in this release that look forward in time involve risks and uncertainties and are forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such risks and uncertainties include, without limitation, the adverse effect from a decline in the securities markets or a decline in the Fund's performance, a general downturn in the economy, competition from other companies, changes in government policy or regulation, inability to attract or retain key employees, inability to implement its operating strategy and/or acquisition strategy, and unforeseen costs and other effects related to legal proceedings or investigations of governmental and self-regulatory organizations.
This announcement is not an offer to purchase or the solicitation of an offer to sell shares of the Fund or a prospectus, circular or representation intended for use in the purchase or sale of Fund shares.
Fund shares are not FDIC-insured and are not deposits or other obligations of, or guaranteed by, any bank. Fund shares involve investment risk, including possible loss of principal.
SOURCE The China Fund, Inc.