-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, JcTqQNHHbG5qgjn39dkBQHrTcXWSYErSIuD9SKYnUPQJ7QmOMrcRhVx5851BWBH7 4PCyKtn+9HnR9WCYrtS8Tw== 0000950135-06-004525.txt : 20060728 0000950135-06-004525.hdr.sgml : 20060728 20060728141334 ACCESSION NUMBER: 0000950135-06-004525 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060531 FILED AS OF DATE: 20060728 DATE AS OF CHANGE: 20060728 EFFECTIVENESS DATE: 20060728 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TAIWAN FUND INC CENTRAL INDEX KEY: 0000804123 IRS NUMBER: 042942862 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-04893 FILM NUMBER: 06987340 BUSINESS ADDRESS: STREET 1: 225 FRANKLIN STREET CITY: BOSTON STATE: MA ZIP: 02110 BUSINESS PHONE: 6176622789 MAIL ADDRESS: STREET 1: 225 FRANKLIN STREET STREET 2: PO BOX 9110 CITY: BOSTON STATE: MA ZIP: 02110 N-Q 1 b61437ghnvq.txt THE TAIWAN FUND UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-Q QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY Investment Company Act file number: 811-4893 THE TAIWAN FUND, INC. (Exact name of registrant as specified in charter) 225 FRANKLIN STREET BOSTON, MA 02110 (Address of principal executive offices)(Zip code) (Name and Address of Agent for Service) Copy to: The Taiwan Fund, Inc. Leonard B. Mackey, Jr., Esq. c/o State Street Bank and Trust Company Clifford Chance U.S. LLP Attention: Mary Moran Zeven, Assistant 31 West 52nd Street Secretary New York, New York 10019 P.O. Box 5049 Boston, MA 02206-5049
Registrant's telephone number, including area code: (800) 636-9242 Date of fiscal year end: August 31, 2006 Date of reporting period: May 31, 2006 ITEM 1: SCHEDULE OF INVESTMENTS THE TAIWAN FUND, INC. Investments/May 31, 2006 (Showing Percentage of Total Value of Investment in Securities) (unaudited)
US$ VALUE SHARES (NOTE C) ---------- ------------- COMMON STOCKS - 97.7% BASIC INDUSTRIES -- 8.1% CONSTRUCTION -- 3.3% Cathay Real Estate Development Co. Ltd. (a) 8,000,000 $ 5,693,772 Goldsun Development & Construction Co. Ltd. (a) 10,000,000 4,292,181 ------------- 9,985,953 ------------- ELECTRIC & MACHINERY -- 0.7% Depo Auto Parts Industrial Co. Ltd. 538,475 2,050,693 ------------- IRON & STEEL -- 2.6% China Steel Corp. 8,000,000 7,616,669 ------------- PLASTICS -- 1.5% Nan Ya Plastics Corp. 2,200,000 3,131,575 Taiwan Hon Chuan Enterprise Co. Ltd. 1,606,000 1,458,860 ------------- 4,590,435 ------------- TOTAL BASIC INDUSTRIES 24,243,750 ------------- FINANCE -- 9.4% FINANCIAL SERVICES -- 9.4% Cathay Financial Holding Co. Ltd. 5,000,000 10,987,982 Chang Hwa Commercial Bank 14,000,000 9,155,611 Chinatrust Financial Holding Co. Ltd. 10,166,000 8,187,383 ------------- TOTAL FINANCE 28,330,976 ------------- TECHNOLOGY -- 80.2% ELECTRONIC COMPONENTS -- 13.7% Cyntec Co. Ltd. 3,700,000 4,030,904 Kinsus Interconnect Technology Corp. 3,414,078 13,588,105 Nan Ya Printed Circuit Board Corp 600,000 6,049,633 Tripod Technology Corp. 2,100,000 7,735,290 Unimicron Technology Corp. 6,000,000 9,832,995 -------------- 41,236,927 -------------- ELECTRONICS -- 2.1% Delta Electronics Inc. 1,500,000 4,190,729 SPI Electronic Co. Ltd. 1,523,000 1,996,753 ------------- 6,187,482 ------------- IC DESIGN -- 7.0% MediaTek, Inc. 1,200,000 13,503,980 Novatek Microelectronics Corp. Ltd. 1,300,000 7,507,414 ------------- 21,011,394 ------------- MEMORY IC -- 3.6% Inotera Memories Inc. 6,800,000 6,622,757 Powerchip Semiconductor Corp. (a) 6,000,000 4,083,034 ------------- 10,705,791 ------------- PC & PERIPHERALS -- 12.8% Catcher Technology Co. Ltd. 1,000,000 12,049,321 Foxconn Technology Co. Ltd. 800,000 6,368,035 Hon Hai Precision Industry Co. Ltd. 3,104,000 $ 19,960,168 ------------- 38,377,524 ------------- SEMICONDUCTOR MANUFACTURING -- 13.4% Advanced Semiconductor Engineering Inc. 8,000,000 8,253,473 Ardentec Corp. 2,500,000 2,575,308 King Yuan Electronics Co. Ltd. 5,000,000 5,259,872 Siliconware Precision Industries Co. 9,000,000 11,518,652 Taiwan Semiconductor Manufacturing Co. 6,800,000 12,799,750 ------------- 40,407,055 ------------- TELECOMMUNICATIONS -- 18.4% Arima Communication Corp. 1,000,000 1,470,267 Cheng Uei Precision Industry Co. Ltd. 1,800,000 8,484,470 D-Link Corp. 6,000,000 7,267,052 Epistar Corp. 3,800,000 14,530,982 High Tech Computer Corp. 600,000 17,830,498 Merry Electronics Co. Ltd. 800,000 2,921,804 Wistron NeWeb Corp. 800,000 2,796,941 ------------- 55,302,014 ------------- TFT-LCD -- 9.2% Au Optronics Corp. 6,213,000 9,154,163 Chi Mei Optoelectronics Corp. 6,500,000 7,690,026 Largan Precision Co. Ltd. 500,000 10,675,823 ------------- 27,520,012 ------------- TOTAL TECHNOLOGY 240,748,199 ------------- TOTAL COMMON STOCKS (Identified Cost -- $205,856,284) 293,322,925 -------------
PRINCIPAL AMOUNT NT$ ----------- COMMERCIAL PAPER - 2.0% Chiao Tong (b) 100,015,757 $3,122,078 Chiao Tung Bank Nan Kong Branch (b) 70,127,120 2,189,078 E. Sun Bank (b) 20,096,158 627,319 ---------- TOTAL COMMERCIAL PAPER (Identified Cost -- $5,886,995) 5,938,475 ----------
See Notes to Schedule of Investments. 1 INVESTMENTS/ May 31, 2006 (unaudited) (continued)
MATURITY AMOUNT US$ -------- REPURCHASE AGREEMENT - 0.3% State Street Bank and Trust Co. 1.45% dated 5/30/06 due 6/5/06 (collateralized by U.S. Treasury Note 3.625%, 1/15/10, market value $1,003,872) (d) $981,237 $ 981,000 ------------ TOTAL INVESTMENTS -- 100.0% (Cost -- $212,724,279 *) $300,242,400 ============
See Notes to Schedule of Investments. 2 NOTES TO SCHEDULE OF INVESTMENTS (a) Non-income producing (b) Certificates of Deposit and Commercial Paper that are traded through Bills Finance Corporations must be guaranteed by either a bank, a trust company or a Bills Finance Corporation. Since there is no recognized credit rating system in the Republic of China, the guarantee may not be comparable to a guarantee issued by a U.S. institution. (c) All securities, including those traded over-the-counter for which market quotations are readily available, are valued at the last sales price prior to the time of determination of the Fund's net asset value per share or, if there were no sales on such date, at the closing price quoted for such securities (but if bid and asked quotations are available, at the mean between the last current bid and asked prices, rather than such quoted closing price). In certain instances where the price determined above may not represent fair market value, the value is determined in such manner as the Board of Directors may prescribe. Short-term investments, having a maturity of 60 days or less, are valued at amortized cost, which approximates market value, with accrued interest or discount earned included in interest receivable. (d) In connection with transactions in repurchase agreements, it is the Fund's policy that its custodian take possession of the underlying collateral securities, the fair value of which exceeds the principal amount of the repurchase transaction, including accrued interest, at all times. If the seller defaults, and the fair value of the collateral declines, realization of the collateral by the Fund may be delayed or limited by legal proceedings. * At May 31, 2006, aggregate gross unrealized appreciation for all securities for which there was an excess of value over financial reporting cost was $94,207,507 and aggregate gross unrealized depreciation for all securities for which there was an excess of financial reporting cost over value was $6,740,866 and net appreciation for financial reporting purposes was $87,466,641. At May 31, 2006, aggregate cost for financial reporting purposes was $212,724,279. ITEM 2. CONTROLS AND PROCEDURES (a) The registrant's principal executive and principal financial officers have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this Form N-Q that includes the disclosure required by this paragraph based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 (17 CFR 240.13a-15(b) or 240.15d-15(b)). (b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant's last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 3. EXHIBITS The certification required by Rule 30a-2(a) of the Investment Company Act of 1940 (17 CFR 270.30a-2(a)), as amended, is attached as an exhibit to this filing. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. THE TAIWAN FUND, INC. By: /s/ Benny T. Hu ---------------------------------- Benny T. Hu President of The Taiwan Fund, Inc. Date: July 18, 2006 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ Adelina Louie ---------------------------------- Adelina Louie Treasurer of The Taiwan Fund, Inc. Date: July 12, 2006 By: /s/ Benny T. Hu ---------------------------------- Benny T. Hu President of The Taiwan Fund, Inc. Date: July 18, 2006 EX-99.CERT 2 b61437ghexv99wcert.txt CERTIFICATIONS CERTIFICATIONS I, Benny T. Hu, certify that: 1. I have reviewed this report on Form N-Q of The Taiwan Fund, Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedule of investments included in this report fairly presents in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: July 18, 2006 /s/ Benny T. Hu - ------------------------------------ Benny T. Hu President of The Taiwan Fund, Inc. I, Adelina Louie, certify that: 1. I have reviewed this report on Form N-Q of The Taiwan Fund, Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedule of investments included in this report fairly presents in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: July 12, 2006 /s/ Adelina Louie - ------------------------------------ Adelina Louie Treasurer of The Taiwan Fund, Inc. -----END PRIVACY-ENHANCED MESSAGE-----