The Taiwan Fund, Inc. Announces 1st Quarter Earnings

Rhea-AI Summary

The Taiwan Fund, Inc. (TWN) reported a net asset value per share of $41.73 on November 30, 2023, representing a 5.03% total return for the quarter. The share price on the NYSE was $32.92, with a 21.11% discount to net asset value. The Fund realized net gains of $2,162,657 and net investment profit of $411,196 for the same period.

Insights

Financial Analyst

The reported increase in the net asset value (NAV) per share of The Taiwan Fund, Inc. from $39.73 to $41.73 signifies a positive performance over the three-month period. This growth in NAV is a crucial indicator of the fund's health and its underlying investments, reflecting the fund's ability to generate value for its shareholders. The NAV is an essential metric for closed-end funds like TWN, as it represents the per-share value of all the assets after subtracting liabilities. The discount to NAV per share also decreased slightly, indicating a potentially narrowing gap between market perception and intrinsic value.

However, the Fund's total return of 5.03% trails behind the TAIEX Total Return Index's performance of 7.07%. This underperformance relative to the benchmark index could raise concerns about the Fund's investment strategy or execution. Investors often use such benchmarks to gauge the effectiveness of fund management. A consistent underperformance could lead to investor skepticism and impact future inflows into the fund.

Market Research Analyst

The Taiwan Fund, Inc.'s market price increase to $32.92 per share and the resulting discount to NAV decreasing, suggests improved investor sentiment towards the fund. However, the persistent discount indicates that the market may still harbor some reservations about the fund's prospects or the broader market it invests in. Closed-end funds often trade at a discount or premium to NAV, influenced by factors such as investor sentiment, market volatility and the demand-supply dynamics specific to the fund's shares.

Moreover, the significant increase in net unrealized appreciation on investments and foreign currency transactions suggests that the Fund's investment holdings have increased in value but have not yet been sold. This unrealized appreciation can be a double-edged sword; while it represents potential gains, it also exposes the Fund to market volatility that could reverse these gains before they are realized.

Economist

The Fund's performance, particularly the net realized gains and the increase in net unrealized appreciation, must be contextualized within the broader economic environment. Taiwan's economy, known for its significant tech industry, can be affected by global trade dynamics, semiconductor supply chains and geopolitical tensions. These factors can directly impact the performance of equity securities listed on the Taiwan Stock Exchange and, by extension, the Fund's returns. The Fund's strategy to seek long-term capital appreciation aligns with the growth-oriented nature of Taiwan's market but also carries inherent risks linked to economic cycles and international relations.

Understanding the macroeconomic factors at play can help stakeholders evaluate the sustainability of the Fund's performance. For instance, if Taiwan's export-driven economy faces headwinds due to slowing global demand, this could negatively impact the Fund's future returns. Conversely, positive developments in trade agreements or tech sector growth could provide tailwinds for the Fund's performance.

NEW YORK, Jan. 16, 2024 /PRNewswire/ --The Taiwan Fund, Inc. (the "Fund") (NYSE: TWN) announced today details regarding its investment performance for the three month period ended November 30, 2023.

The Fund reported a net asset value per share of $41.73 as of the close of business on November 30, 2023. This represents an increase of $2.00 per share from the net asset value per share of $39.73 reported on August 31, 2023. The Fund had a total return of 5.03% for the three months ended November 30, 2023 based on the change in its net asset value.  For the same period the TAIEX Total Return Index returned 7.07% (in US$ terms).

The Fund's share price, as traded on the New York Stock Exchange on November 30, 2023, was $32.92, representing an increase of $1.82 per share from the share price of $31.10 on August 31, 2023. The Fund's discount to net asset value per share decreased from 21.72% on August 31, 2023 to 21.11% on November 30, 2023.

For the three month period ended November 30, 2023, the Fund had net realized gains of $2,162,657 on investments and foreign currency transactions and an increase in net unrealized appreciation of $11,260,797 on investments and foreign currency transactions. The Fund's net investment profit (consisting of dividend and securities lending income less operating expenses) for the same period was $411,196.

	Quarter Ended November 30, 2023	Year Ended August 31, 2023	Quarter Ended November 30, 2022
Total Net Assets	$ 306,065,923	$ 295,088,209	$ 224,755,565
Gross Investment Income Per Share	$ 998,425 $0.14	$ 5,426,051	$ 538,982 $0.07
Net Investment Income (Loss) Per Share	$ 411,196 $0.06	$ 3,085,793	$ (225,786) $(0.03)
Net Realized Gain (Loss) on Investments and Foreign Currency Transactions	$ 2,162,657	$ 5,433,759	$ (8,622,111)
Change in Net Unrealized Appreciation (Depreciation) on Investments and Foreign Currency Translations	$ 11,260,797	$ 64,125,816	9,787,866
Total Realized and Unrealized Gain (Loss) on Investments Per Share	$ 13,423,455 $1.83	$ 69,559,575	$ 1,165,755 $0.16
Net Increase (Decrease) in Net Assets Resulting from Operations Per Share	$ 13,834,651 $1.89	$ 72,645,368	$ 939,969 $0.13

 

The Fund is a diversified closed-end investment company, which seeks long term capital appreciation primarily through investments in equity securities listed on the Taiwan Stock Exchange.  Shares of the Fund are listed on the New York Stock Exchange under the ticker symbol "TWN."

For additional information on the Fund, including information on the Fund's holdings, visit the Fund's website at www.thetaiwanfund.com or call 1-800-426-5523.

CONTACT:
Brian F. Link, Secretary
1-800-426-5523
www.thetaiwanfund.com

View original content:https://www.prnewswire.com/news-releases/the-taiwan-fund-inc-announces-1st-quarter-earnings-302036187.html

SOURCE The Taiwan Fund, Inc.

FAQ

What is the net asset value per share of The Taiwan Fund, Inc. on November 30, 2023?

The net asset value per share of The Taiwan Fund, Inc. on November 30, 2023, was $41.73.

What was the total return for The Taiwan Fund, Inc. for the three months ended November 30, 2023?

The total return for The Taiwan Fund, Inc. for the three months ended November 30, 2023, was 5.03%.

What was the share price of The Taiwan Fund, Inc. on the NYSE on November 30, 2023?

The share price of The Taiwan Fund, Inc. on the NYSE on November 30, 2023, was $32.92.

What was the discount to net asset value per share of The Taiwan Fund, Inc. on November 30, 2023?

The discount to net asset value per share of The Taiwan Fund, Inc. on November 30, 2023, was 21.11%.

What were the net realized gains of The Taiwan Fund, Inc. for the three month period ended November 30, 2023?

The net realized gains of The Taiwan Fund, Inc. for the three month period ended November 30, 2023, were $2,162,657.