Diversified Services

Securities Brokerage and Underwriting -- National Securities Corporation
Fund Management -- National Investment Trust Co., Ltd.
Capital Management -- Wan Sheng Securities Investment Consulting Co., Ltd.
Futures -- National Futures Corporation
Venture Capital
Overseas Offices in London, Hong Kong, Shanghai, San Francisco, and Tokyo
Educational and Cultural Foundation -- NSFG Educational and Cultural Foundation

National Securities Corporation
National Securities is one of Taiwan's leading full service securities firms. Our operating efficiency is exceptional. We ranked first in government bond trading, following a formal assessment by Taiwan's central bank, the Central Bank of China in 1994. With the approval of Taiwan's SFC, we were the first securities firm to trade on Taiwan's Over-the-Counter Stock Exchange. We were also the first Taiwan listed securities firm assessed and certified for its ISO 9002 quality management system standard at the end of 1996. After the acquisition of Wan Sheng Securities Co., Ltd. and Ten-Jen Securities Co., Ltd., our paid-in capital and net asset value have increased substantially to NT$11.3 billion and NT$16.5 billion, respectively. NSC's business scope is as follows:

a. Stock Brokerage

The Stock Brokerage Division executes orders to buy or sell shares for our clients on the Taiwan Stock Exchange and the Over-the-Counter Exchange. Our staff receives thorough training and adheres to rigid standards as professional securities salespeople and traders. They provide investment advice and tailor securities products to meet the needs of our individual clients. Members of our Research Department utilize our diverse information resources to produce in-depth industry analyses and updates on all listed Taiwan companies and OTC-traded firms. Our research staff is capable of providing our clients timely and reliable information and advice for investment in Taiwan and overseas that includes macroeconomic updates and analysis, interpretation of political happenings, and technical stock analysis. NSC provides clients information and analysis of stock index movements, while providing rigorous fundamental equity and stock and bond market analysis for the purpose of informing and advising individual clients.

To protect our clients' interests, we conduct internal auditing according to regulations set forth by the Securities & Futures Commission of the Ministry of Finance.

b. Margin Trading

We provide stock borrowing and margin lending services to the investment public. Recognizing the inconvenience of limits in margin trading, we began to offer securities lending and financing services in 1991 with the necessary capital and shares backed up by our own capital and, in rare cases, that of securities financing companies. This reliable system provides investors with regulated credit lines at competitive interest rates.

c. Proprietary Trading

We engage in proprietary securities trading to enhance market liquidity, reduce market volatility, and regulate supply and demand to help stabilize share trading on the stock market.

d. Underwriting

We advise corporations on going public and OTC companies on how to raise capital on the Taiwan Stock Exchange. Our highly professional underwriting staff offers meticulous guidance on public offerings. We are able to assist clients in raising the necessary capital by accessing Taiwan's highly liquid capital markets.

e. Stock Registration and Transfer Services

This Division functions as a stock registrar for listed companies. In order to enhance the quality and efficiency of stock registration and transfer, we have both developed and continued to use our own applicable software. In addition to common stock registration, we are experienced in funds, convertible bonds, and preferred stock registration.

f. Bond Trading

The Bond Division is responsible for trading and dealing Taiwan Bonds. We obtained a Government Bond Dealer License and have participated in this market with professionalism since 1991. Our bond trading operations include the buying and selling of bonds, often with repurchase agreements.
Bonds provide liquidity, safety and fixed income streams to bond holders in the form of periodic coupon payments. Relying on our bond dealing expertise, we strive to be a market maker and provide valuable bond dealing information to clients. We are always on the clients' side in creating investment profits.

g. Electronic Trading Business

Electronic Trading Business includes Internet trading, telephone trading, 688 trading and WAP trading, providing 24-hour trading services and investment information inquiries. Also, we keep developing and providing more convenient tools and more financial information, including real-time quotes, real-time news, research reports and all kinds of information about futures and funds. Moreover, our customer service department is always willing to answer any questions by email or telephone.

h. International Business

The International Division provides securities trading services to global institutional and private investors. We are the first Taiwan brokerage firm to offer brokerage services for Hong Kong and Japanese shares to Taiwan investors. In order to quicken the pace of internationalization, we've set up subsidiaries in Hong Kong and London and representative offices in Tokyo and Shanghai.

i. Derivatives Products

The International Division provides securities trading services to global institutional and private investors. We are the first Taiwan brokerage firm to offer brokerage services for Hong Kong and Japanese shares to Taiwan investors. In order to quicken the pace of internationalization, we've set up subsidiaries in Hong Kong and London and representative offices in Tokyo and Shanghai.

j. Futures Introducing Broker

The companies Taiwan Stock Market index futures endeavor was approved on July 20, 1998, while its entry into financial index futures and electronics index futures were approved on July 21, 1999. We are relying on our extensive business networks as we develop our futures intermediary business to facilitate our clients' open accounts and to place and transfer orders. Our National Futures Corporation subsidiary acts as a primary settlement agency.


National Investment Trust Co., Ltd.
National Investment Trust Co., Ltd. is one of Taiwan's first fund management companies to be approved by the government and also, the first fund management company to trade on Taiwan's Over-the-Counter Exchange. In 2000, paid-in capital totaled NT$1 billion and total equity reached NT$1.6bn. Our core businesses are issuing, raising and selling international and domestic mutual funds, and the investment and management of said mutual funds.
Through year 2000, NITC manages 18 mutual funds with total assets under management of NT$64.2bn.

NITC Family of Funds
Name of the Fund Inception Fund Type Characteristics
Taipei Fund 1986 Open-end equity fund Focus on listed stocks and bonds for foreign investors.
NITC Fund 1987 Open-end equity fund Focus on listed stocks, suitable for aggressive domestic investors.
Fu Yuan Fund 1988 Closed-end equity fund Investment in listed shares, suitable for investors with a long-term horizon.
Trans-Pacific Fund 1988 Open-end equity fund Focusing on the Pacific Rim countries, primarily the United States and Japan, and providing Taiwan investors the opportunity to diversify investment into the world's leading capital markets.
Double Fortune Fund 1989 Open-end equity fund Investing in a broad portfolio of blue-chip Taiwan stocks with a 3-year average return before tax over 6%, suitable for investors with a long-term horizon.
Great Fortune Fund 1991 Balanced equity-bond fund Investing at least 60% in Taiwan's bond market and no more than 30% in listed stocks, suitable for conservative investors.
The New Taipei Fund 1992 Open-end equity fund Focused on listed stocks and bonds for foreign investors.
NITC Bond Fund 1994 Open-end bond fund Investing in local bonds; a tax-exempt, Taiwan investment "parking" vehicle suitable when switching between funds during down-periods in the Taiwan stock and bond markets.
Wonderful Fund 1994 Open-end equity fund Investing in a maximum of 3 Taiwan equity sectors at a time to generate maximum profit for shareholders. It offers aggressive capital appreciation to investors who aim to outperform the Taiwan Weighted Share Price Index.
Malaysia Fund 1995 Open-end equity fund Investing in Malaysian listed equities for local investors who wish to invest in a highly developed overseas stock market.
Taiwan Fortune Fund 1996 Open-end equity fund Investing in listed stocks and bonds with fewer limitations
Taiwan Bond Fund 1997 Open-end bond fund Targeting on repurchase agreements, Government certificates of deposit and money-market instruments; suitable for tax-exempt investors.
Taiwan OTC Fund 1997 Open-end equity fund Investing at least 60% in OTC listed stocks, suitable for high risk-aversion investors who seek high returns.
Global Taiwan Enterprise Fund 1998 Open-end equity fund Invested in:
(1) Taiwan listed and OTC stocks and Bonds;
(2) U.S.A, Hong Kong, Singapore, Malaysia and Thailand Stock Markets; focusing on globally competitive Taiwan enterprises
Small Cap Fund 1998 Open-end equity fund Focusing on cutting edge small-cap companies

NITC has performed with distinction.
  • In 1995 the Taipei Fund was awarded first place by Standard & Poor's Micropal, for the "5-year offshore territories," Taiwan equity sector. Further accolade was given to the fund manager of NITC's Double Fortune Fund (the best performing Taiwan equity fund from 1993 through the end of 1995), who received an award for being one of the "top ten out-performers in securities and futures."
  • In 1997 the Taipei Fund was awarded first place by Standard & Poor's Micropal, for its performance in the "3-year global new-market" mutual fund sector. In 1998, NITC's New Taipei Fund, Fun Yuan Fund and Great Fortune Fund won five out-performing prizes, making NITC the biggest winner at the First Annual Taiwan Fund Performance Awards.
  • In 1999, NITC's New Taipei Fund, Double Fortune Fund and Great Fortune Fund, again, won five prizes. In 2000, at the Taiwan Fund Performance Awards, NITC's Small Cap Fund, Taiwan Fortune Fund and Great Fortune Fund won 3 awards. NITC has won the most fund awards among all the trust investment companies.

    Responding to the government's goal of making Taipei the Financial hub of the Asia Pacific region, NITC has diligently been introducing new products. Not only does NITC provide diversified products to local investors, the firm also acts as a mechanism to bring foreign capital into the Taiwan market, enhancing its international image. Moreover, we established a mutual-fund management company in the Philippines, cooperating with other international well-known corporations from that country as well as Japan and America. We were Taiwan's first investment trust company to invest in a mutual-fund company overseas.

    NITC has set three large goals going forward.
    First, we plan to develop and introduce new products to the market.
    Second, we will expand our fund sales channels.
    And last, NITC will promote the outstanding track record of its funds.
    Furthermore, we will aggressively cooperate with global corporations in order to pursuit for more outstanding performance.


    Wan Sheng Securities Investment Consulting Co., Ltd.
    Reinvested by Wan Sheng Securities Corporation, Wan Sheng Securities Investment Consulting, was established in June 1995 with initial paid-in capital of NT$10 million, which was raised to NT$70 million in June 1998. In August 2000, Wan Sheng Securities was acquired by National Securities Corporation, after which, Wan Sheng Securities Investment Consulting naturally became a member of NSFG (National Securities and Finance Group). Wan Sheng Securities Investment Consulting has 21 employees and is currently applying to merge with National Securities Asset Management and has applied to the government for authorization to engage in discretionary asset management. If permitted, Wan Sheng Securities Investment will further raise its paid-in capital to NT$300 million, in order to meet the increasing demands of discretionary asset management. Wan Sheng Securities Investment Consulting has two goals going forward. First, is to enter the discretionary asset management business, while the second goal is to offer consulting services for foreign mutual funds.

    For the discretionary asset management business, Wan Sheng Securities Investment Consulting has used 'Account Officer' service, assigning specific investment consultants to each individual client, creating specific investment strategies and trading suggestions using the most current analysis. Moreover, Wan Sheng Securities Investment Consulting has set up a special analyzing system, regularly inputting the latest data to monitor macroeconomic trends and industry-specific developments. We also hold an investment analysis meeting every month to discuss macroeconomic data with the goal of ferreting out individual stocks that can perform well given the economic conditions at that time. Wan Sheng Securities Investment Consulting also focuses on technical analysis and has created the latest "Scan" computer system to help fund managers coordinate strategy and actual transactions to make sure their clients portfolios are managed with maximum professionalism.

    To expand our service area and help our clients take advantage of overseas investment opportunities, we provide foreign fund consulting services. Wan Sheng Securities Investment Consulting has access to complete databases for each member of the international community, including macroeconomic data, stock markets, and current balance sheets for individual companies. The firm has also opted in to Reuters' instant information-transmitting system to provide timely and correct information and suggestions to our clients so they will be the first to see an opportunity when it presents itself. Wan Sheng Securities Investment Consulting provides a full menu of diversified foreign funds to meet its clients' needs.

    In addition to its two core businesses, Wan Sheng Securities Investment Consulting also provides professional consulting services, publishes security investment materials, and holds investment seminars to meet the client's needs and keep them involved. To create synergy with NSFG's business strategy, Wan Sheng Securities Investment Consulting Company, along with opening discretionary asset management business, would continue to develop its investment consulting business and provide quality services to its clients.


    National Futures Corporation
    NSC was one of the first companies to take advantage of the government policy of promoting Futures businesses in Taiwan. In 1994, NSC invited domestic and overseas companies, as well as celebrities to join in the celebration of the founding of NFC, one of the first licensed futures companies in Taiwan. In 1998, NFC got its settlement license, following the establishment of the futures exchange.

    NFC's Scope of business encompasses the trading of every type of futures product trading and global future information services. Its brokerage range covers all international future products at all times, including:
    1. Foreign Exchange: pound, franc, yen and Deutsche mark;
    2. Exchange Rate: European U.S. dollar and bond;
    3. Indexes: TAIEX, TAIEX Electronics, TAIEX Financials, SIMEX, S&P, Dow Jones, NASDAQ, NIKKEI index and the Hang Seng index;
    4. Agricultural products: wheat, corn, beans, coffee, coca and sugar;
    5. Metals: copper, aluminum, gold and platinum;
    6. Energy: crude oil, light crude oil and burning oil.

    Futures and options are derivatives, which are guaranteed and highly leveraged; therefore, when we handle our clients' trading, we focus on a diverse range of products to help fund managers nail down the winning opportunities.


    Venture Capital
    In 2000, the Taiwan government passed a law that allows securities companies, using their own capital, to invest in venture and capital businesses. Our firm takes this new business very seriously; therefore, we have set up a venture capital committee to see that it will be handled as professionally as possible. We plan to offer this service in the near future.


    National Finance Corporation
    As the market in Taiwan has experienced its run-up, investment sales channels have increased and financial products have diversified. The need for financial planning and professional knowledge has increased industry-wide. NSFG has established Hong Yue Investment Co. in 1993 and also cooperated with NSC's underwriting business, providing related financial management and consulting services.

    Hong Yue Investment Co. has aggressively developed its investing business and currently cooperates with many professional investment and venture capital firms, building up its stature as a leading investment bank.


    NSC Securities (Asia) Limited
    Due to increasing equity trading on global markets including Taiwan, international capital movement and mutual fund investing activities have also increased greatly. Following the governments financial liberalization and ongoing internationalization, NSC has set up NSC Securities (Asia) Limited to augment our overseas business. This is our first overseas branch and continues to outperform all the branches other Taiwan securities companies have set up in Hong Kong.

    In addition to its stock brokerage business in Hong Kong, NSC Securities (Asia) also encourages foreign institutional investors to invest in Taiwan equities and helps Taiwanese companies to raise funds overseas, or to list on exchanges in Hong Kong and throughout Southeast Asia.

    In October 1995 NSC Securities (Asia) restructured and set up NSC Futures (Asia) Ltd. and NSC Capital (Asia) Ltd. to expand the services offered to include, among others, futures, financial and investing consulting. In November 1997, we cooperated with NITC to set up NITC Asset Management (Asia) as a provider of fund management services with businesses that include:

    Stock Brokerage:
    1. Hong Kong stock trading;
    2. U.S., Japan, Mainland China B-shares and Southeast Asian stock trading;
    3. Hang Seng stock index futures trading;
    4. Taiwan issued ECB and GDR trading;
    5. Other foreign stocks trading, including bonds with firm returns, commercial papers and floating-rate bonds.

    Investment Banking:
    1. Taiwan companies listing or raising funds in Hong Kong;
    2. Taiwan companies listing or issuing ECB or GDR at overseas markets;
    3. Arranging allotments of Hong Kong listing companies' shares;
    4. Being the financial consultant for companies fund raising.


    NSC Securities (Europe) Limited
    London is the world's financial center at the heart of global fund movements. London has become a very important location for international companies impressed by its International financial experience. Differentiating themselves from the New York and Tokyo stock markets, which focus on their respective local markets, the London stock market deals in international trading of foreign currency, stocks, bonds and futures, taking the lead in global securities trading.

    Encouraged by our government's international financial policy and investors' multiple needs, NSC Securities reinvests NSC Securities (Europe) Ltd. through NSC (Cayman) Holdings Ltd. NSC Securities (Europe) has been operating since March 1, 2000, expanding our overseas business to service more clients. The theater of operations for NSC Securities (Europe) includes:
    1. Taiwan stock trading;
    2. Hong Kong, Mainland China B-shares and Southeast Asia stock trading;
    3. Taiwan stock index and Hang Seng stock index futures trading;
    4. Taiwan issued ECB and GDR trading;