The Taiwan Fund, Inc. Announces 3rd Quarter Earnings

Rhea-AI Summary

The Taiwan Fund (NYSE: TWN) reported its Q3 2025 financial results, with a net asset value (NAV) of $46.82 per share as of May 31, 2025, representing a $1.10 increase from February 28, 2025. The fund's share price traded at $37.77, reflecting a 19.33% discount to NAV.

The fund achieved a total return of 2.41% for the quarter, outperforming the TAIEX Total Return Index's 1.66%. For the nine-month period, TWN delivered a 3.57% total return, surpassing the benchmark's 3.04%. The quarter saw net realized gains of $1.15 million and an increase in unrealized appreciation of $3.63 million, with net investment income of $290,622.

Positive

• Outperformed TAIEX benchmark in both quarterly (2.41% vs 1.66%) and nine-month (3.57% vs 3.04%) periods
• Net asset value increased by $1.10 per share in Q3 2025
• Positive net realized gains of $1.15M and unrealized appreciation of $3.63M in Q3

Negative

• High discount to NAV at 19.33%, increased from 18.55% in previous quarter
• Nine-month NAV declined $6.96 per share from August 2024
• Net investment income decreased to $290,622 in Q3 2025 from $946,970 in Q3 2024

Insights

Investment Fund Analyst

Taiwan Fund outperformed its benchmark index with 2.41% quarterly return versus 1.66% for TAIEX, maintaining significant NAV discount.

The Taiwan Fund's Q3 2025 results show modest improvement in performance metrics. The fund's net asset value (NAV) increased by $1.10 per share to $46.82 for the quarter ending May 31, 2025, representing a 2.41% total return. This outperformed the TAIEX Total Return Index, which returned 1.66% in USD terms during the same period.

The fund continues to trade at a significant discount to NAV of 19.33%, which actually widened from 18.55% in the previous quarter. This persistent discount represents a potential opportunity for value-oriented investors, though it also signals continued market skepticism about Taiwan equities.

For the nine-month period, the fund delivered a 3.57% total return based on NAV change plus distributions, again outperforming its benchmark index which returned 3.04%. However, looking at the component metrics reveals some concerns. The fund's gross investment income decreased year-over-year from $1,194,955 to $899,273 for the quarter, with per-share income dropping from $0.16 to $0.14.

Net investment income showed an even steeper decline, falling from $946,970 to $290,622 quarterly, with per-share figures dropping from $0.13 to $0.04. This significant reduction suggests either higher expenses or lower dividend yields from underlying holdings.

While the fund reported net realized gains of $1,149,165 on investments and foreign currency transactions, this represents a substantial decrease from the $18,996,701 in the same quarter of 2024, indicating reduced profit-taking or trading activity. The increase in unrealized appreciation of $3,628,968 contrasts positively with the $13,057,608 unrealized depreciation in the year-ago quarter, suggesting improved market sentiment toward the fund's holdings.

BOSTON, July 16, 2025 /PRNewswire/ -- The Taiwan Fund, Inc. (the "Fund") (NYSE: TWN) announced today details regarding its investment performance for the three month period ended May 31, 2025.

The Fund reported a net asset value per share of $46.82 as of the close of business on May 31, 2025. This represents an increase of $1.10 per share from the net asset value per share of $45.72 reported on Feb 28, 2025. The Fund's share price, as traded on the New York Stock Exchange on May 31, 2025, was $37.77, representing a discount to net asset value of 19.33%. This represents an increase of $0.53 per share from the share price of $37.24 on February 28, 2025, which represented a discount to net asset value of 18.55%. The Fund had a total return of 2.41% for the three months ended May 31, 2025 based on the change in its net asset value. For the same period the TAIEX Total Return Index returned 1.66% (in US$ terms).

For the nine month period ended May 31, 2025, the Fund's net asset value per share decreased $6.96 per share from the net asset value per share of $53.78 reported on August 31, 2024. The reduction in net asset value reflects the $7.40 per share distribution to shareholders in December of 2024 as well as the Fund's operating results as well as the accretive effects of the Share Repurchase Program. For the nine month period ended May 31, 2025, the share price, as traded on the NYSE, decreased $6.96 per share from the share price of $44.73 reported on August 31, 2024. The Fund had a total return of 3.57% for the nine month period ended May 31, 2025 based on the change in its net asset value and the Fund's annual distribution. For the same period the TAIEX Total Return Index returned 3.04% (in US$ terms).

For the three month period ended May 31, 2025, the Fund had net realized gains of $1,149,165 on investments and foreign currency transactions and an increase in net unrealized appreciation of $3,628,968 on investments and foreign currency transactions. The Fund's net investment income (consisting of dividend and interest income less operating expenses) for the same period was $290,622.

	Quarter Ended	Nine Months Ended		Quarter Ended	Nine Months Ended
	May 31,	May 31,		May 31,	May 31,
	2025	2025		2024	2024
Total Net Assets	$290,127,535	$290,127,535		$345,529,574	$345,529,574
Gross Investment Income	$899,273	$2,211,150		$1,194,955	$2,864,649
Per Share	$0.14	$0.34		$0.16	$0.40
Net Investment Income (Loss)	$290,622	$300,554		$946,970	$655,782
Per Share	$0.04	$0.05		$0.13	$0.09
Net Realized Gain (Loss) on Investments
and Foreign Currency Transactions	$1,149,165	$16,570,083		$18,996,701	$34,938,340
Change in Net Unrealized
Appreciation (Depreciation) on Investments	$3,628,968	$(19,036,171)		$(13,057,608)	$35,385,682
and Foreign Currency Translations
Total Realized and Unrealized
Gain (Loss) on Investments	$4,778,133	$(2,466,088)		$5,939,093	$70,324,022
Per Share	$0.74	$(0.38)		$0.82	$9.70
Net Increase (Decrease) in Net
Assets Resulting from Operations	$5,068,756	$(2,165,534)		$6,886,063	$70,979,804
Per Share	$0.78	$(0.33)		$0.95	$9.79

*****

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.          

(End)

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

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SOURCE The Taiwan Fund, Inc.

FAQ

What was The Taiwan Fund's (TWN) net asset value per share in Q3 2025?

The Taiwan Fund reported a net asset value of $46.82 per share as of May 31, 2025, representing a $1.10 increase from the previous quarter.

How did TWN perform compared to its benchmark index in Q3 2025?

TWN outperformed its benchmark, delivering a total return of 2.41% compared to the TAIEX Total Return Index's 1.66% for the quarter ended May 31, 2025.

What is the current discount to NAV for The Taiwan Fund (TWN)?

As of May 31, 2025, TWN traded at a 19.33% discount to NAV, with a share price of $37.77 compared to its NAV of $46.82.

How much net investment income did TWN generate in Q3 2025?

TWN generated net investment income of $290,622 for the quarter ended May 31, 2025, equivalent to $0.04 per share.

What were TWN's realized and unrealized gains for Q3 2025?

TWN reported net realized gains of $1.15 million and an increase in unrealized appreciation of $3.63 million on investments and foreign currency transactions.