FUDA PLANS TO INCREASE THE PLEDGE FOR THE ETF

FUDA IS PREPARING TO CONVERT IT INTO A REVENUE-PRODUCING INVESTMENT PRODUCT THROUGH THE FITH FUND. THE COMPANY HAS SUBMITTED A REVISED REGISTRATION STATEMENT TO THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION (SEC), SEEKING TO PERMIT A PLEDGE OF UP TO 100 PER CENT OF THE FUND ' S HOLDINGS IN THE TOKYO AREA AND TO DISTRIBUTE THE RESULTING NET INCENTIVE TO SHAREHOLDERS THROUGH QUARTERLY CASH ALLOCATIONS. THE APPLICATION IS STILL IN ITS PRELIMINARY STAGES AND THE CHANGE IS SUBJECT TO THE ENTRY INTO FORCE OF THE REGISTRATION DECLARATION. FETH ' S NET ASSETS AT THE TIME OF APPLICATION WERE APPROXIMATELY $898 MILLION. FUDA INDICATED THAT THE PLEDGE COULD START “AS SOON AS POSSIBLE” AFTER REGISTRATION CAME INTO EFFECT, BUT THAT PAYMENT WAS NOT GUARANTEED AND THAT THE FUND MIGHT SELL THE ETHERAF TO GENERATE CASH FOR DISTRIBUTION. AT THE SAME TIME, THE ETF OF THE TAIPEI REGISTERED A SMALL NET OUTFLOW OF $16.3 MILLION OVER THE PAST TWO DAYS, AS THE BEST WEEKLY PERFORMANCE SINCE MID-APRIL, FOLLOWING LAST WEEK'S INFLOW OF $244.9 MILLION. NEVERTHELESS, THE TOTAL NET ASSETS OF THE ETF REMAIN RELATIVELY LOW, AT APPROXIMATELY $10.48 BILLION。