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Taiwan Fund Monthly Insights – January 2023

The TWSE Index (which may also be referred to as the TAIEX Index or the TSEC Index, is a capitalization-weighted index of all listed common shares traded on the Taiwan Stock Exchange) rose 10.53% in January 2023, in US dollar terms. The top three performing industries were Semiconductors & Semiconductor Equipment, Retailing, and Software & Services. The top three underperforming industries were Transportation, Food & Staples Retailing and Telecommunication Services. The Taiwan TPEx Exchange Index, (“TWOTCI”, the over-the-counter index) rose 10.37% in January.

Taiwan Fund Monthly Insights – December 2022

The TWSE index fell 4.31% in December 2022, in US dollar terms. The top three outperforming industry groups were Household & Personal Products, Health Care Equipment & Services, and Consumer Services. The bottom three performing industry groups were Semiconductors & Semiconductor Equipment, Insurance, Automobiles and Auto Components. The Taiwan TPEx Exchange Index, (“TWOTCI”, the over-the-counter index) declined 3.14% in December 2022.

Taiwan Fund Monthly Insights – November 2022

The Taiwan Stock Exchange Weighted Index (“TWSE”) surged 19.80% in November 2022, in US dollar terms. The Information Technology sector rose 11.9%, followed by nontechnology (TWSE market sectors exclusive of Information Technology and Financial), which was up 5.45% and the Financial sector which was up 2.42%. The Taiwan TPEx Exchange Index, (“TWOTCI”, the over-the-counter index) was up 18.81% during the month in US dollar terms. The top three outperforming Industry Groups in the TWSE were Semiconductor & Semiconductor Equipment, Pharmaceuticals, Biotechnology & Life Sciences and Diversified Financials. The bottom three underperforming Industry Groups were Telecommunication Services, Food & Staples Retailing and Energy.

Taiwan Fund Monthly Insights – October 2022

The Taiwan TAIEX Total Return Index (the “benchmark”) fell 4.95% in October 2022 in US ollar terms, with the technology sector dropping 2.90%, non-technology down 0.41%, he financial sector down 0.62% and over-the-counter stocks (as measured by the Taiwan OTC Index) down 6.59% during the same period, in US Dollar terms. The top three outperforming sectors were real estate, energy, and media & entertainment. The bottom three underperforming sectors were health care equipment & services, pharmaceuticals & biotech, and diversified financials.

Taiwan Fund Monthly Insights – September 2022

The Taiwan Stock Exchange fell 14.73% in September 2022 in US dollar terms. The technology sector was down 8.72%, non-technology -4.16%, the financial sector down 1.86% and over-the-counter stocks down 16.60% during the same period. The top three outperforming sectors were food and staples retailing, consumer services and media & entertainment. The bottom three underperforming sectors were pharmaceuticals & biotech, transportation, and semiconductors & equipment.

Taiwan Fund Monthly Insights – August 2022

The Taiwan Stock Exchange closed the month of August 2022 down 0.46% in US dollar terms, with the technology sector down 0.99%, non-technology down 0.52%, the financial sector up 2.22% and over-the-counter stocks up 7.34%. The top three outperforming sectors were LCD-TFT panel, transformers and uninterruptible power supply and biotech. The bottom three underperforming sectors were shipping, handset and power supply.

Taiwan Fund Monthly Insights – July 2022

The Taiwan Stock Exchange closed the month of July 2022 up 2.37% in US dollar terms, with the technology sector up 4.44%, non-technology down 0.54%, the financial sector down 1.20% and over-the-counter stocks down 2.67%. The top three outperforming sectors were information access, business automation and optical lens. The bottom three underperforming sectors were plastic, securities and wire and cable.

Taiwan Fund Monthly Insights – June 2022

The Taiwan Stock Exchange closed the month of June 2022 down 12.53% in US dollar terms, with the technology sector down 14.92%, non-technology down 8.73%, the financial sector down 8.37% and over-the-counter stocks down 12.06%. The top three outperforming sectors were biotech, consumer electronics and information access. The bottom three underperforming sectors were integrated circuit (“IC”) manufacturing, IC dynamic random-access memory, manufacturing and IC design.

Taiwan Fund Monthly Insights – May 2022

The Taiwan TAIEX Total Return Index closed the month of May 2022 up 2.88% in US dollar terms, with the technology sector up 5.33%, non-technology up 1.27%, the financial sector down 5.44% and over-the-counter stocks up 5.49%.

Important Information

Portfolio holdings are subject to change daily.

It should not be assumed that any of the securities transactions or holdings discussed here were or will prove to be profitable, or that the investment recommendations or decisions Nomura Asset Management U.S.A. Inc. (“NAMUSA”) makes in the future will be profitable or will equal the investment performance of the securities discussed herein.

Investing in the Fund involves certain considerations in addition to the risks normally associated with making investments in securities. The value of the shares issued by the Fund, and the income from them, may go down as well as up and there can be no assurance that upon sale, or otherwise, investors will receive back the amount originally invested. There can be no assurance that you will receive comparable performance returns. Movements in foreign exchange rates may have a separate effect, unfavorable as well as favorable, on the gain or loss otherwise experienced on an investment. Past performance is not a guide to future returns. Accordingly, the Fund is only suitable for investment by investors who are able and willing to withstand the total loss of their investment. In particular, prospective investors should consider the following risks:

  • Discretionary investment is not risk free. The past operating performance does not guarantee a minimum return for the discretionary investment fund. Apart from exercising the duty of care of a prudent adviser, NAMUSA will not be responsible for the profit or loss of the Fund, nor guarantee a minimum return.
  • It should be noted that investment in the Fund is only suitable for sophisticated investors who are aware of the risk of investing in Taiwan and should be regarded as long term. Funds that invest in one country carry a higher degree of risk than those with portfolios diversified across a number of markets.
  • Investment in the securities of smaller and unquoted companies can involve greater risk than is customarily associated with investment in larger, more established, companies. In particular, smaller companies often have limited product lines, markets, or financial resources and their management may be dependent on a smaller number of key individuals. In addition, the market for stock in smaller companies is often less liquid than that for stock in larger companies, bringing with it potential difficulties in acquiring, valuing, and disposing of such stock. Proper information for determining their value, or the risks to which they are exposed, may not be available.
  • Investments within emerging markets such as Taiwan can be of higher risk. Many emerging markets, and the companies quoted on their stock exchanges, are exposed to the risks of political, social, and religious instability, expropriation of assets or nationalization, rapid rates of inflation, high interest rates, currency depreciation, and fluctuations and changes in taxation which may affect the Fund’s income and the value of its investments.
  • The marketability of quoted shares may be limited due to foreign investment restrictions, wide dealing spreads, exchange controls, foreign ownership restrictions, the restricted opening of stock exchanges, and a narrow range of investors. Trading volume may be lower than on more developed stock markets, and equities are less liquid. Volatility of prices can also be greater than in more developed stock markets. The infrastructure for clearing, settlement, and registration on the primary and secondary markets may be undeveloped. Under certain circumstances, there may be delays in settling transactions in some of the markets.

The Taiwan Fund, Inc., c/o State Street Bank and Trust Company, 1 Lincoln Street, P.O. Box 5049, Boston, MA, 02111.