The Taiwan Fund, Inc.

Overview: Investment objective and strategies

​The Fund’s investment objective is to seek long-term capital appreciation through investment primarily in equity securities listed on the Taiwan Stock Exchange (TSE) in the Republic of China (“ROC”).

This objective may not be changed without the approval of a majority of the Fund’s outstanding voting securities.

It is anticipated that at least 80% of the Fund’s assets will be invested in Taiwanese companies.

Investment in the Fund involves certain risks which are not normally associated with investments in the United States, including a high degree of stock price volatility in the ROC securities markets. See the Fund’s prospectus for a full discussion of these risks.

The Fund is diversified and intends to continue to diversify its assets over a broad spectrum of the ROC economy.

This includes, as conditions warrant from time to time, cement, chemicals and plastics, construction, electrical/electronics, finance, banking, food, textiles, glass, rubber, pulp and paper, metal products and machinery, retailing and tourism.

In selecting companies for investment, the Fund’s portfolio managers will consider overall growth prospects, competitive position in the respective industry technology, research and development, productivity, labor costs, raw material costs and sources, profit margins, return on investment, capital resources, government regulation, management and other factors.

The Fund`s equity investments will generally be predominantly in common stocks, but investments may also be made in non-common stocks, for example preferred stocks (several of which are presently listed on the TSE) and in convertible debentures listed on the TSE.