The Taiwan Fund, Inc. Announces 1st Quarter Earnings

The Taiwan Fund, Inc. (NYSE: TWN) has released its Q1 FY2025 earnings report for the period ended November 30, 2024, providing insights into the fund's performance and financial health. The fund's net asset value (NAV) decreased to $52.97 per share from $53.78, marking a -1.51% total return for the quarter. This slight underperformance compared to the TAIEX Total Return Index's -1.34% return in US$ terms reflects the fund's focus on long-term capital appreciation through investments in Taiwan Stock Exchange-listed equity securities.

The fund's share price on the New York Stock Exchange (NYSE) declined to $42.63 from $44.73, with the discount to NAV widening from 16.83% to 19.52%. This widening discount indicates that the market may be pricing in higher risk or lower expectations for the fund's future performance. However, it is essential to consider the fund's investment strategy and the unique market conditions in Taiwan when evaluating its performance.

Financial highlights for the quarter include net realized gains of $3,115,096 on investments and foreign currency transactions, offset by a decrease in net unrealized appreciation of $9,851,700 on investments and foreign currency transactions. The fund's net investment loss for the quarter was $27,963, consisting of dividend and securities lending income less operating expenses.

Total net assets stood at $347,890,875, down from $361,509,514 in the previous quarter. The fund's net decrease in assets from operations was $6,764,566 ($1.03 per share), reflecting the market's performance and the fund's investment strategy.



In conclusion, The Taiwan Fund, Inc.'s Q1 FY2025 earnings report highlights the fund's slight underperformance compared to the broader market and the widening discount to NAV. Despite these developments, the fund's investment strategy remains focused on long-term capital appreciation through investments in Taiwan Stock Exchange-listed equity securities. As investors evaluate the fund's performance, it is crucial to consider the fund's unique investment strategy and the specific market conditions in Taiwan.