ANNOUNCEMENTS

PRESS RELEASE

Dao Heng Fund Management Limited takes responsibility for the information contained herein.

Dao Heng Fund Management Limited is pleased to provide a special offer to buy units from the unitholders of the Dao Heng Malaysia & Singapore ("the Fund") so as to release their investment from the Fund. Since the suspension of convertibility of the Malaysian Ringgit imposed in Malaysia from 2 September 1998, almost all Malaysian funds have declared a suspension of the determination of the Net Asset Value. This is one of the first such offers by a Hong Kong fund manager in response to recent events in Malaysia.

To protect the interests of the Fund's unitholders, Dao Heng Fund Management Limited has offered to buy units from unitholders in consideration of a subscription into another Dao Heng unit trust. This would involve a transfer of units from the unitholders to Dao Heng Fund Management Limited and then a subscription (without the normal initial charge) into any of the following Dao Heng unit trusts: Asia Fund, China Fund, Hong Kong Fund, Global Equity Fund, Global Balanced Growth Fund, Fixed Income Fund and Money Market Fund. To facilitate the transfer of units, the trustee of the Fund ?The Bank of Bermuda (Cayman) Limited will perform a special valuation to ascertain the price for such transfer. The securities held by the Fund will be valued at the latest closing price and the Malaysian portion of the Fund will be converted to the Fund's base currency at US$1=MYR4.00 (representing a 5% discount on the official rate US$1=MYR3.80). The price at which Dao Heng Fund Management Limited will offer to purchase units in the Fund will be based on the valuation at the transfer date while the offer price at which units in the selected replacement fund will be acquired will be the applicable offer price (without the normal initial charge). This offer will be valid for two weeks from the date of this release and will be notified in writing to each of the unitholders of the Fund.

As all units of unitholders who take up this offer will be acquired by Dao Heng Fund Management Limited, the transaction will not involve removing any money from the assets of the Fund and hence will not affect the operation of the Fund. Apart from the above special valuation (for the purpose of fixing the transfer price), the Fund will remain suspended until further notice.

Should there be any enquiries, please contact the Marketing Department, Dao Heng Fund Management Limited, 12th Floor, The Center, 99 Queen’s Road Central, Hong Kong, Tel. no. 2218-8688, Fax no. 2162-4588.

 


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