Taiwan Fund Monthly Insights - August, 2026

Taiwan’s equity market rebounded in August 2026 with the TAIEX Total Return Index (the “Benchmark”) rising 9.15% in U.S. dollar terms, as investors returned to AI-related names on resilient technology fundamentals. Taiwan’s economic backdrop remained strong, with industrial production data pointing to upside potential for 3rd quarter 2026 GDP growth amid a continued AI-driven upcycle. The rally was also supported by a sharp reversal in foreign institutional investor (“FII”) positioning, with FIIs purchasing net $7.6 billion USD of Taiwan equities in August. During the month, the best three performing industry groups were Materials, Pharmaceuticals, Biotechnology & Life Sciences and Technology Hardware & Equipment. The three poorest performing industry groups were Consumer Discretionary Distribution & Retail, Media & Entertainment and Consumer Staples Distribution & Retail. We do not have any holdings in these three industry groups.