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Thursday, June 15, 2006

Trident Real Estate Investment Trust Fund (01005T) approved

After the trident real estate investment trust fund, first one designed by foreign investment bank Lehman Brothers, approved by Taiwan government, total number of Real Estate Investment Trust Funds (REITs) available in Taiwan grew to five. Trident Real Estate Investment Trust Fund will raise 3.85 billion NT dollars from market. Total market value of all five REITs will be over 43 billion NT dollars. If we try to create a total Taiwan Real Estate Investment Trust Index, the free float factor for Trident REIT will be 100%.

To manually create your own passive Taiwan Real Estate Investment Trust Index portfolio, the weights for each of the five REITs are as following:

reits_eng

Assets of Trident Real Estate Investment Trust Fund include Chen-Jian 21 building, 1.6 billion NT dollars, Champagne building, 1.5 billion NT dollars, and Elite logistic building, 600 million NT dollars. Elite group will be responsible for day to day management of the assets. Estimate yield for Trident Real Estate Investment Trust Fund will be 4.031%.

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