Taiwan Greater China Fund Produces 20.2% Total Return on Shares for 12 Months Ending June 30
Business Wire - August 08, 2005 09:06
NEW YORK, Aug 08, 2005 (BUSINESS WIRE) -- The Taiwan Greater China Fund (NYSE: TFC), a diversified closed-end investment company registered in the United States, today announced its second quarter 2005 financial results.
"The Fund continues to focus on improving investment performance, reducing expenses and narrowing its discount to net asset value," said Steven R. Champion, President and CEO.
The Fund's net asset value (NAV) and market value produced total returns during the quarter that outperformed the Taiwan Stock Exchange Index (TAIEX) but trailed its primary benchmark, the Taiwan China Strategy Index (the "TCS Index") as computed by MSCI. The Fund's NAV gained 4.4% and its share price on the New York Stock Exchange rose 4.3% during the second quarter while the TAIEX rose 3.8% and the TCS Index was up 5.2% for the same period. For the 12 months ending on June 30, the Fund's total return on a market value basis outperformed the TAIEX and TCS Index while its total return on an NAV basis for the same period trailed both indexes. During the 12 months ending June 30, the Fund's total returns on a market value basis and an NAV basis were 20.2% and 16.2%, respectively, compared with total returns of 16.7% for the TAIEX and 17.0% for the TCS Index for the same period. (All performance data reflect total returns in U.S. dollar terms and, except for the TCS Index, are sourced from Bloomberg. Past performance is no guarantee of future results. The results reflected above assume the reinvestment of dividends and capital gains. For important information and disclosures on the TCS Index, see the Fund's website at http://www.taiwangreaterchinafund.com/.)
The Fund's unaudited ratio of expenses to average net assets was 0.42% during the second quarter of 2005, and was 2.91% for the 12 months ending on June 30. In the first half of 2005, the Fund's unaudited total expenses were reduced approximately 40% from the same period of last year.
The Fund's discount to NAV averaged 8.5% during the second quarter of 2005 and 8.2% for the first half of 2005 compared to 11.7% and 10.5% for the same periods, respectively, of last year.
On June 30, 2005, total net assets of the Fund were $109,309,124 or a net asset value per share of $5.46. This compares with total net assets of $154,154,448 or a net asset value per share of $4.71 at June 30, 2004. Total net assets on March 31, 2005 were $106,209,413 or a net asset value per share of $5.23. Total number of shares outstanding at June 30, 2005, following repurchases of 301,100 shares during the second quarter of 2005, was 20,005,318. After repurchases of 1,492,900 shares from November 2004 through March 2005 and a self-tender offer during the third quarter of 2004 for approximately one-third of the Fund's previously outstanding shares, total number of shares outstanding at March 31, 2005 was 20,306,418. The total number of shares outstanding at June 30, 2004 was 32,698,976. The Fund paid a dividend of $0.01 per share on July 30, 2004 to shareholders of record on July 12, 2004 (ex-date July 8, 2004).
For the quarter ended June 30, 2005, the Fund had a realized capital gain of $1,649,955 or $0.08 per share. During the same quarter, the Fund had a net investment gain (ordinary income minus operating expenses) of $61,239 or less than $0.01 per share. For the six months ended June 30, 2005, the Fund had a realized capital gain of $1,193,445 or $0.06 per share and a net investment loss of $542,763 or $0.03 per share.
The Fund's equity investments as of June 30, 2005 were in the following major industries:
Percent of
Industry Net Assets
Computer Systems & Hardware 19.47%
Semiconductors 14.79
Plastics 11.03
Flat-Panel Displays 9.09
Computer Peripherals--ODM 8.93
Steel & Other Metals 8.64
Electronic Components 5.61
Transportation 3.34
Automobile 2.65
Electrical & Machinery 2.24
As of June 30, 2005, the Fund's 10 largest equity holdings,
representing 54.00% of net assets, were in:
Percent of
Company Net Assets
Hon Hai Precision Industry Co., Ltd 9.69%
China Steel Corp. 7.63
Taiwan Semiconductor Manufacturing Co., Ltd. 7.41
AU Optronics Corp. 5.38
Asustek Computer Inc. 5.11
Formosa Chemicals & Fiber Corp. 4.86
United Microelectronics Corp. 4.66
Lite-On Technology Corp. 3.30
BenQ Corp. 3.02
Nan Ya Plastics Corp. 2.94
The Taiwan Greater China Fund is listed and publicly traded in the
United States. The Fund is organized for investment in securities of
Taiwan issuers by non-Taiwan investors and follows an investment
strategy of primarily investing in Taiwan listed companies that derive
or expect to derive a significant portion of their revenues from
operations in or exports to mainland China.
Quarter Ended Quarter Ended Quarter Ended
6/30/05 3/31/05 6/30/04
Total
Net Assets $109,309,124 $106,209,413 $154,154,448
NAV
Per Share $5.46 $5.23 $4.71
Shares
Outstanding 20,005,318 20,306,418 32,698,976
SOURCE: The Taiwan Greater China Fund
Taiwan Greater China Fund
Steven R. Champion, 011-886-2-2715-2988
or
The Altman Group
Patricia Baronowski, 212-681-9600
or
Web site: http://www.taiwangreaterchinafund.com
Copyright Business Wire 2005
