Taiwan Greater China Fund Monthly Update
9 May 2005
The Taiwan Greater China Fund's net asset value (NAV) in April outperformed the Taiwan Stock Exchange Index (TAIEX) and matched its primary benchmark, the Taiwan China Strategy Index (TCS Index) as computed by MSCI. The Fund's price on the New York Stock Exchange trailed the performance of the TAIEX and the TCS Index. The Fund's NAV fell 1.1% and its share price declined 5.1% compared to a 1.1% decline of the TCS Index and a 2.4% fall in US$ terms of the TAIEX. It is worth noting that, for the 12-month period through April, the Fund's NAV and share price performance beat both indexes (see 12-month data below). The Fund's discount to net asset value averaged 8.9% during April with a low of 6.2%, a high of 12.1%, and a closing value of 10.1%. During the month, the Taiwan dollar appreciated 0.8% against the U.S. dollar.
The Taiwan market was sluggish for most of April as many local investors waited for listed companies to release first quarter results. Signs of a slowing U.S. economy (lackluster retail sales and a fall in factory production), a jump in U.S. consumer prices (the sharpest rise in two years) and disappointing Q1 results for IBM were also factors. The market managed to pick up near the end of the month on optimism over cross-straight relations as the leader of Taiwan's largest opposition political party journeyed to China, marking the highest contacts between Taiwan and China in more than 50 years.
Total Return(a)
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1 Month 12 Months
----------- -------------
Fund (NAV) -1.1% 5.7%
Fund (US$ Share Price) -5.1% 6.2%
Taiwan China Strategy Index -1.1% 2.8%
TAIEX -2.4% 3.8%
NT$/US$ 0.8% 6.7%
(a) Returns for the Fund, TCS Index and TAIEX in US Dollars. Source:
Bloomberg except MSCI for Taiwan China Strategy Index.
Portfolio Management
The portfolio holds about 99.6% of its assets in equities. Such holdings are well diversified among top quality stocks, with investment decisions based on a fundamental approach to securities and economic analysis.
Top Ten Holdings Industry Diversification
Ten Largest % of
Company % of Net Assets Sectors Net Assets
-------- --------------- -------------- -----------
Hon Hai Precision Computer Systems
Ind. Co. 10.9% & Hardware 20.3%
Taiwan Semiconductor
Mfg. Co. 7.9 Semiconductors 14.5
China Steel Corp. 6.9 Plastics 12.5
AU Optronics Corp. 5.3 Flat-Panel Displays 9.4
Formosa Chemicals &
Fiber Corp. 5.3 ODM - Peripherals 8.0
Asustek Computer Inc. 5.1 Steel & Other Metals 7.9
United Microelectronics
Corp. 4.0 Transportation 3.7
Nan Ya Plastics Corp. 3.5 Electronic Components 3.6
Formosa Plastics Corp. 3.2 Automobile 2.9
Lite-On Technology Corp. 3.2 Cement 2.2
Per Share Standing at April 29:
NAV NYSE
------ -------
$5.17 $4.65
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Contact:
Taiwan Greater China Fund
Portfolio Management:
Steven R. Champion, 886-2-2715-2988
or
The Altman Group
Shareholder Services:
Patricia Baronowski, 1-212-681-9600
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Source: Taiwan Greater China Fund
Source: Business Wire
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