TWI Taiwan I.T

RNS No 2304r
TAIWAN INVESTMENT TRUST PLC
23 June 1999


PRELIMINARY ANNOUCEMENT OF UNAUDITED RESULTS FOR THE YEAR ENDED 28TH FEBRUARY
1999.

                       CHAIRMAN'S STATEMENT


Total assets fell by 22.8% to #69.0 million over the year to 28th February 
1999.  This compares to a fall in the Taiwan Stock Exchange Weighted Index of
31.7% in sterling terms over the same period.

Gross revenue for the year under review was #541,000 against #441,000 for the
previous fourteen month period.  Your Directors are not recommending the
payment of a dividend.

Asia's economic crisis adversely affected Taiwan during the year under review.
Economic growth fell to 4.8% in calendar 1998, a disappointing rate for Taiwan
albeit one of the highest in Asia.  A return to higher growth is not expected
until the second half of 1999.  While Taiwan has not formally entered a period
of deflation the pressures are building.  Prospects for domestic consumption
and export demand are questionable and a further slowdown is a possibility.

In contrast to a number of other areas, however, the electronics sector has
had a boost from the Year 2000 computer factor and a significant part of the
year's outperformance of the Index by your Company relates to the
overweighting of the high-technology sectors.  Many of these companies have
gained significant global market shares through focused capital expenditure
and technology licensing.

Taiwan has experienced problems in its domestic economy due in part to the 
slowdown in export demand from Asia.  A number of Taiwanese firms have
reported financial difficulties in the last six months.  The Government
responded with a series of measures to bring about lower interest rates but 
the deflationary forces working in the economy have led real rates to rise
adding to the problems of the corporate sector.  The next stage of economic
stimulus is now at hand with the Government announcing increased public works
expenditure.   

To encourage stock market investment or investment in the economy, there is a
need to break the negative sentiment inhibiting consumption and at present the
Government has failed to convince the consumer that the economy is near its
cyclical low point.  A review  of the most recent economic data, however,
shows signs of better export performance and a gradual improvement in the
monetary environment.  The current valuation of the stock market, compared to
its historic averages, is not demanding.  We remain confident in the prospects
for capital appreciation in Taiwan.

In  previous reports I have said that the level of discount to net asset value
at which the share price stands is of concern to your directors.  A marketing
initiative was undertaken but has  failed to lower the discount sufficiently. 
As a consequence, shareholders will find a proposal to wind up the Company 
enclosed with this report.  Shareholders are being offered an alternative
investment in Taiwan or cash.  Having to offer these proposals is
disappointing for your directors as the Company has performed creditably. 
From the launch in 1994 to the latest year end, the net asset value of your
Company has actually increased by 0.8% compared to a fall in the Taiwan Stock
Exchange Weighted Index, in sterling terms, of 26.5%.  For this performance, 
your directors would like to thank Vaughn Chang, the individual at your
investment managers responsible for your Company's portfolio.

The proposals to wind up your Company are being put to shareholders because
your directors feel obliged to do so having expressed concern over the level
of the discount in previous reports to shareholders.  Despite a narrowing of
the discount to the current level of approximately 20%, we feel it is right
for shareholders to be able to decide the future of their Company.



Norman Lamont
Chairman
    
23rd June 1999
 


                    CONSOLIDATED STATEMENT OF TOTAL RETURN                    
                     (INCORPORATING THE REVENUE ACCOUNT)                      
                    for the year ended 28th February 1999                    


                                            Year ended       1st January 1997
                                         28th February       to 28th February
                                                  1999                   1998
                               Revenue Capital   Total Revenue Capital  Total
                                 #'000   #'000   #'000   #'000   #'000  #'000

Realised (losses)/gains              -  (4,637) (4,637)      -  25,687 25,687
 on investments            
Unrealised (depreciation)/           - (13,599)(13,599)      -   1,523  1,523
 appreciation of investments
                              ________ ________ _______ _______ ______ _______
Total capital (losses)/gains on      - (18,236)(18,236)      -  27,210 27,210
 investments                                                                  
                         
Income                             274       -     274     485       -    485
Results of dealings by subsidiary  267       -     267     (44)      -    (44)
Exchange  losses                     -    (304)   (304)      -  (1,155)(1,155)

Investment management and         (301)   (902) (1,203)   (442) (1,327)(1,769)
 advisory fees            
Investment performance fees          -       -       -       -  (2,038)(2,038)
Other expenses                    (834)      -    (834) (1,398)      - (1,398)
                               ________ _______ _______ _______ _______ ______
Net return on ordinary            (594)(19,442)(20,036) (1,399) 22,690 21,291
 activities before finance 
 costs and taxation

Interest payable on bank 
 overdrafts                         (1)     (4)     (5)     (7)    (20)   (27)
                                _______ _______ _______ _______ _______ ______
Return on ordinary activities     (595)(19,446)(20,041) (1,406) 22,670 21,264
 before tax

Tax on ordinary activities         (49)   (277)   (326)    203    (574)  (371)
                                _______ _______ _______ _______ _______ ______
Return on ordinary activities     (644)(19,723)(20,367) (1,203) 22,096 20,893
after tax
                                ======= ======= ======= ======= ======= ======
(Loss)/return per Ordinary share(0.91p)(27.72p)(28.63p) (1.69p)  31.06p 29.37p
                                ======= ======= ======= ======= ======= ======

                                                             1999       1998
                                                            #'000      #'000

Equity shareholders' funds                                 69,039     89,406
                                                           =======    ======

Net asset value per Ordinary share                          97.04p    125.66p


                                            Year ended       1st January 1997
                                         28th February       to 28th February
                                                  1999                   1998
Income Comprises:                                #'000                  #'000 
         
Overseas dividends                                 173                    352
Overseas bond interest                              72                      1 
Deposit interest                                    29                    132
                                                 =====                  =====
                                                   274                    485
                                                 =====                  =====

The above financial information does not constitute statutory accounts as
defined in section 240 of the Companies Act 1985.  Full accounts for the
period ended 28th February 1998, on which the auditors gave an unqualified
report, have been delivered to the Registrar of Companies.  Statutory accounts
for the year ended 28th February 1999 will be delivered to the Registrar of
Companies in due course.

The Report and Accounts are expected to be posted to all registered
shareholders today and copies may be obtained from the registered office of
the Company at 1, Grosvenor Place, London SW1X 7JJ.

BY ORDER OF THE BOARD
JUPITER ASSET MANAGMENT LIMITED - SECRETARIES

END

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