Yuichi Nomoto

About Yuichi Nomoto

Yuichi Nomoto is President of The Taiwan Fund, Inc. (TWN) since 2022 and President & CEO of Nomura Asset Management U.S.A. Inc. since 2019; he is 52 years old as disclosed in TWN’s 2025 proxy. His recent roles include Head of Global Business Strategy at Nomura Asset Management Co., Ltd. (NAM Tokyo) in 2022–2023, Managing Director at Nomura since 2018, and leadership in client service/marketing (2016–2020) . During his tenure overseeing the Fund’s adviser relationship, TWN delivered NAV total returns of 26.56% over the nine months ended May 31, 2024 and 3.57% over the nine months ended May 31, 2025; the fund traded at a ~19% discount to NAV on May 31, 2025 . Education is not disclosed in TWN filings for Nomoto; external biography notes (NCRAM director) are provided in TWN’s 2022 proxy .

Past Roles

External Roles

Fixed Compensation

TWN does not disclose individual officer cash compensation; as a closed-end fund, its officers who are employees of the adviser are paid by Nomura Asset Management U.S.A. Inc., with TWN bearing only certain travel costs for board/committee attendance . TWN’s advisory fee structure (paid to Nomura) provides the economic framework that likely influences executive incentives at the adviser level:

Performance Compensation

While TWN does not disclose individual officer performance metrics or incentive awards, the adviser’s compensation is explicitly tied to Fund performance versus the TAIEX Total Return Index, creating firm-level pay-for-performance alignment that likely influences Nomoto’s incentives as CEO of the adviser.

Implication: The adviser’s economics increase/decrease with Fund out/underperformance versus the TAIEX TR Index, reinforcing alignment with NAV total return outcomes rather than absolute AUM growth alone .

Equity Ownership & Alignment

• Officer beneficial ownership (shares/percent) for Nomoto is not disclosed in TWN proxies; “Ownership of Securities” tables cover directors only, not officers .
• No pledging/hedging disclosures for officers are provided; director ownership is reported in dollar ranges (e.g., Over $100,000 for Anthony Clark; $50,001–$100,000 for William Kirby) .
• The adviser agreement’s performance fee design directly links Nomura’s revenue to TWN’s performance versus TAIEX TR, providing economic alignment at the management entity level .

Employment Terms

• Compensation Source: Adviser pays salaries/expenses of TWN officers who are employees of Nomura; TWN bears travel costs for board/committee attendance per policy .
• Advisory Agreement Termination: Terminable by TWN’s board/stockholders or Nomura on 60 days’ notice; auto-terminates upon assignment; annual renewal by independent directors and board/stockholders as required .
• Liability/Indemnity: Adviser not liable except for willful misfeasance, bad faith, gross negligence, or reckless disregard; mutual indemnities defined .
• Portfolio Management by Participating Affiliate: NAM Taiwan supports services under a participating affiliate framework supervised by Nomura U.S.A. .

Performance & Track Record

Fund performance during Nomoto’s leadership of the adviser and as Fund President is disclosed in TWN earnings releases.

Risk Indicators & Red Flags

• No officer-specific legal proceedings or SEC investigations disclosed for Nomoto in TWN filings reviewed; officer compensation and contracts (severance, change-of-control, clawbacks, ownership guidelines) are not disclosed at the Fund level .
• Discount Management oversight exists at board level; TWN traded at ~19% discount to NAV on May 31, 2025, highlighting continuing market discount dynamics despite buybacks and distribution actions .
• Adviser performance fee alignment reduces risk of pure asset-gathering incentives, but lack of officer-level disclosure limits precision on personal pay-for-performance and retention risk .

Compensation Structure Analysis

• Shift to Nomura advisory: Base fee reduced from prior adviser’s 0.70% to 0.60% with identical ±25 bps performance band vs TAIEX TR, improving fee competitiveness while preserving performance alignment .
• Guaranteed vs At-Risk: Adviser compensation includes meaningful variable component; officer-specific cash/equity mix, vesting, or metrics at Nomura U.S.A. are not disclosed by TWN .
• Discretionary Bonuses/Option Repricing: No Fund-level executive awards or repricing disclosed; officers receive no compensation directly from TWN .

Say-on-Pay & Shareholder Feedback

• TWN proxies focus on director elections and do not include say-on-pay for officers; director fees and meeting compensation are disclosed .
• Independent board committees (Audit, Nominating, Valuation, Discount Management) oversee Fund operations and discount management .

Investment Implications

• Alignment: Strong firm-level alignment via performance-adjusted advisory fees tied to NAV total return vs TAIEX TR; this likely cascades into Nomoto’s incentives as CEO of the adviser even though individual pay terms are not disclosed .
• Retention and Contract Risk: Officer employment terms are at the adviser; TWN’s advisory agreement is renewable annually and terminable on 60 days’ notice—key governance lever rather than personal severance economics .
• Trading Signals: Lack of Section 16 officer ownership/sales disclosure for Nomoto at TWN constrains insider-selling pressure analysis; monitor future Form 4s and discount management actions for signals. The persistent ~19% discount to NAV suggests continued emphasis on buybacks/tenders and active discount oversight, which can be catalysts independent of executive-specific incentives .
• Execution Risk: Periods of underperformance vs TAIEX (e.g., 3-month ended May 31, 2024) and periods of outperformance (e.g., 3-month ended May 31, 2025) will directly impact adviser economics; strategy consistency and market positioning (TAIEX beta/growth orientation via NAM Taiwan) should be monitored for rolling-period performance outcomes .