TWN Overview

Taiwan's Defense Budget Announcement: Taiwan's President Lai Ching-te has proposed a $40 billion defense budget over the next eight years to enhance military capabilities in response to U.S. pressure and China's military threats.

Focus on Asymmetrical Defense: The budget will fund significant arms acquisitions from the U.S. and develop the 'T-Dome' defense system to protect against various military threats from China.

Increased Defense Spending: Taiwan's defense spending is projected to rise to 3.3% of GDP by next year, with a commitment to increase it to 5% by 2030, reflecting the urgency of the security situation.

U.S. Support and China's Opposition: The U.S. State Department has welcomed Taiwan's budget as a demonstration of resolve, while China has condemned the military ties between the U.S. and Taiwan, asserting that Taiwan's military buildup will not prevent reunification.

New Tender Offer Policy: The Taiwan Fund, Inc. has adopted a new conditional tender offer policy that allows for the purchase of up to 25% of its outstanding shares at 98% of net asset value if its performance exceeds the TAIEX Total Return Index over the next five years.

Benefits for Stockholders: The Board believes this policy will benefit stockholders by either providing liquidity through the tender offer or through potential outperformance of the Fund compared to its benchmark.

Investment Performance Overview: The Taiwan Fund, Inc. reported a net asset value per share of $46.82 as of May 31, 2025, reflecting a $1.10 increase from February 28, 2025, with a total return of 2.41% for the three-month period and 3.57% for the nine-month period ending on the same date.

Financial Highlights: For the three months ended May 31, 2025, the Fund achieved net realized gains of approximately $1.15 million and net investment income of about $290,622, while experiencing a decrease in net asset value per share over the nine-month period due to distributions and operating results.