Julian Reid
About Julian Reid
Julian Reid (born 1944) is an Independent Director and Chairman of the Board of The China Fund, Inc. (CHN) since 2018, with his current term extending to 2027 . He has over 50 years of investment management experience across Asia, Europe, and the Americas; formerly led the investment company business at Jardine Fleming (acquired by J.P. Morgan) and has served as chairman and/or director of numerous investment companies in Asia, London, and New York; he is licensed by regulatory bodies in the UK, Hong Kong, Singapore, and Australia and was named “Small Board Trustee of the Year” by Fund Directions in 2007 for work as independent chairman of The Korea Fund, Inc. . In 2024, his age was disclosed as 79 .
Past Roles
| Organization | Role | Tenure | Committees/Impact |
|---|---|---|---|
| 3a Funds Group | Director & Chairman | 1998–present | Leadership in investment companies |
| JM Properties Ltd. | Director & Chairman | 2012–2015 | Governance oversight |
| JP Morgan China Region Fund, Inc. | Director | 1997–2017 | Asia investment oversight |
| Prosperity Voskhod Fund Ltd. | Director & Chairman | 2006–2015 | Emerging markets governance |
External Roles
| Organization | Role | Tenure | Notes |
|---|---|---|---|
| The Korea Fund, Inc. | Director & Chairman of the Board | Current | Recognized by Fund Directions in 2007 for governance work |
Board Governance
- Independence: CHN’s Board is composed entirely of Independent Directors (not “interested persons” under the 1940 Act). Reid serves as an Independent Chairman .
- Committees (current CHN structure): Governance, Nominating & Compensation; Contracts; Investment; Discount Management — all comprised exclusively of independent directors, including Reid .
- Audit Committee: Richard A. Silver is the Audit Committee Chair; Reid has served as a member (historical disclosure) .
- Attendance: Four regular Board meetings in FY2024; every Director attended each Board and committee meeting on which they served; all Directors attended the 2024 Annual Meeting .
- Leadership structure: Independent Chair; majority voting; oversight of Investment Manager (Matthews International Capital Management, LLC) and other service providers .
Fixed Compensation
| Component | Amount | Notes |
|---|---|---|
| Annual Director Retainer | $47,000 | Applies to each Director |
| Annual Meeting Fee | $10,000 | Paid in quarterly installments after attendance at each quarterly meeting |
| Special In-Person Meeting Fee | $3,000 per meeting | Board or Committee |
| Special Telephonic Meeting Fee | $1,000 per meeting | Board or Committee |
| Additional Retainer – Chairman of the Board (Reid) | $14,000 | Paid to Reid for Chair role |
| Additional Retainer – Audit Committee Chair | $8,000 | Paid to Silver (context for committee chair fees) |
Compensation structure changes: Prior years used a single annual fee framework ($70,000 Chair; $64,000 Audit Chair; $56,000 other Directors). As of January 1, 2024, CHN shifted to a retainer-plus-meeting-fee structure, indicating greater alignment with meeting participation and role-specific responsibilities .
Performance Compensation
- No performance-based compensation (no RSUs/PSUs, options, or metrics) for Directors disclosed; director compensation consists of cash retainers and meeting fees .
| Performance Metric | Target | Actual | Payout Impact |
|---|---|---|---|
| None disclosed | — | — | No performance-linked awards disclosed |
Other Directorships & Interlocks
| Company | Role | Committee Roles | Interlock/Conflict Notes |
|---|---|---|---|
| The Korea Fund, Inc. | Director & Chairman | Not disclosed in CHN proxy | External leadership role; no related-party transactions with CHN disclosed |
| JP Morgan China Region Fund, Inc. (prior) | Director | Not disclosed | Historical role; no CHN conflicts disclosed |
| Prosperity Voskhod Fund Ltd. (prior) | Director & Chairman | Not disclosed | Historical role; no CHN conflicts disclosed |
- No related-party transactions or loans to Directors disclosed; Section 16(a) reporting compliance noted by CHN in multiple years .
Expertise & Qualifications
- Decades of investment management leadership, especially in Asia; head of investment company business at Jardine Fleming; extensive board experience in closed-end funds .
- Regulatory credentials: Affiliate of the Securities Industry of Australia; licensed in the UK, Hong Kong, Singapore, and Australia .
- Governance recognition: “Small Board Trustee of the Year” (2007) by Fund Directions for work at The Korea Fund .
Equity Ownership
| Dollar Range of Equity Securities Held in CHN | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|---|
| Julian Reid | None | $10,001–$50,000 | $1–$10,000 | $1–$10,000 | $1–$10,000 | $1–$10,000 |
- Aggregate dollar range across fund complex is identical to CHN (CHN is the only fund overseen), reinforcing no broader fund complex holdings .
- No share counts, pledged shares, or hedging disclosures in proxy materials; ownership guidelines for directors not disclosed .
Director Compensation – Multi-Year (Cash)
| Metric (USD) | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 |
|---|---|---|---|---|---|
| Julian Reid – Aggregate Compensation From Fund | $70,000 | $72,000 | $72,000 | $71,500 | $68,333 |
| Pension/Retirement Benefits | — | — | — | — | — |
| Estimated Annual Benefits Upon Retirement | — | — | — | — | — |
Insider Trades and Section 16 Compliance
| Year | Proxy Statement Disclosure | Note |
|---|---|---|
| FY2018 | Officers/Directors complied with Section 16(a) reporting requirements | Compliance affirmed |
| FY2022 | Officers/Directors complied with Section 16(a) reporting requirements | Compliance affirmed |
- CHN proxies do not list Form 4 transaction details; no insider trading activity for Directors is disclosed in these documents. Section 16 compliance statements indicate timely reporting .
Governance Assessment
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Strengths:
- Fully independent board with an independent Chair; strong committee coverage spanning governance, contracts, investment, discount management .
- 100% attendance across Board and committee meetings in FY2024; consistent expectations for attendance .
- Compensation framework updated in 2024 to retainer-plus-meeting-fee structure, increasing pay-for-engagement alignment .
- Deep Asia and closed-end fund expertise; extensive regulatory licensure enhances oversight quality .
-
Potential concerns / RED FLAGS:
- Low personal ownership ($1–$10,000 in recent years), which may signal limited economic alignment versus peers who mandate higher ownership levels (no ownership guidelines disclosed) .
- Age and succession planning should be monitored given long tenure and leadership role; continued strong attendance mitigates immediate risk .
- External chair role at The Korea Fund: while common in closed-end fund governance networks, investors should monitor for informational interlocks; no related-party transactions disclosed .
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Net view: Board independence and attendance are strong, with relevant Asia-focused expertise. Alignment could be enhanced by clearer director ownership guidelines and/or equity-based retainers (not typical for closed-end funds but potentially additive to investor confidence) .