LONDON, August 5, 2013 /PRNewswire/ --
Edison Investment Research, a leading international investment research firm, announces the initiation of coverage of The Taiwan Fund, Inc (TWN). The report, prepared by analyst Andrew Mitchell, gives an insight into the investment process used by the manager and discusses the investment outlook for the Taiwan market.
Edison has today published a report, which analyses the investment approach of the manager of the Taiwan Fund, the outlook for the Taiwan market and the performance of the fund. The Taiwan Fund seeks long-term capital appreciation through equity investments listed in Taiwan. It is a closed-end company listed on the New York Stock Exchange with a market cap of US$145m.
The managers of subadviser APS, Wong Kok Hoi and James Liu, believe the best way to outperform the market over the long term is to invest in a diversified portfolio of companies chosen for their sustainable growth prospects and valuation following detailed analysis.
Taiwan has a very open economy with exports accounting for 64% of GDP. As a result, it is dependent on global macroeconomic trends and developments in China, which account for 30% of Taiwan's trade.
Arguably for an investor, Taiwan sits in a comfortable middle ground between higher-risk, potentially higher-growth emerging markets and larger, more mature, advanced economies. From a valuation perspective, the Taiwan market is also broadly in the middle ground on a historical or geographical comparison. The fund's current share price discount to net asset value, of about 11%, could contract significantly if sentiment about Chinese growth improves.
The fund has recently announced the planned introduction of a managed distribution plan with a proposed target rate of 5% of market price: a significant development for investors with an income requirement.
For the full report see: http://www.edisoninvestmentresearch.com/research/company/the-taiwan-fund
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SOURCE Edison Investment Research