Assets in global equity and fixed income funds, which Taiwan classifies as “hybrid market” funds (meaning products that invest in both developed and emerging markets), accounted for 34% of Taiwan’s NT$3.39trn ($111.9bn) offshore fund industry or products that are domiciled outside the country.
US-focused funds, which include both equity and fixed income, remain the most popular in the single country category. They accounted for 17% of total offshore assets. US products also saw the highest increase in assets in the category from the start of the year, up 18% to NT$591bn in August.
However, emerging market fund assets, both equity and fixed income, had the largest increase among all fund categories, doubling during the year. Flows were driven by emerging market bond funds, which rose 64% to NT$333.2bn.
On the flipside, the biggest decrease in assets came from Korea-focused funds, which declined by 32%.
In Taiwan, offshore funds are more popular than locally-domiciled funds, which had assets of TWD 2.3bn. In terms of the number of funds, there are 995 offshore funds and 784 onshore funds.
Taiwan’s offshore funds by investment destination (in NT$bn)
|
|
August 2017 |
January 2017 |
Market share |
Change |
|
Global funds |
||||
| Developed markets |
375.9 |
379.7 |
11% |
-1.01% |
| Emerging markets |
409.4 |
269.7 |
12% |
51.76% |
| Hybrid markets |
1161.8 |
1089.9 |
34% |
6.60% |
| Global Subtotal |
1,947.0 |
1739.4 |
57% |
11.94% |
|
Single Country funds |
||||
| Japan |
37.7 |
37.3 |
1% |
1.07% |
| Korea |
3.9 |
5.7 |
0% |
-31.72% |
| Thailand |
5.6 |
6.3 |
0% |
-11.04% |
| Indonesia |
6.8 |
6.5 |
0% |
3.44% |
| India |
40.4 |
45.1 |
1% |
-10.35% |
| US |
591.6 |
500.8 |
17% |
18.11% |
| United Kingdom |
0.7 |
0.6 |
0% |
11.78% |
| Australia |
3.8 |
4.0 |
0% |
-5.35% |
| Russia |
23.0 |
21.7 |
1% |
5.64% |
| Other |
13.8 |
14.8 |
0% |
-7.23% |
| Single Country Subtotal |
727.2 |
643.0 |
21% |
13.09% |
|
Regional funds |
||||
| North America |
71.0 |
74.0 |
2% |
-4.09% |
| Developed Europe |
137.6 |
138.1 |
4% |
-0.34% |
| Asia Pacific(Exclude Japan) |
237.2 |
231.9 |
7% |
2.32% |
| Asia Pacific(Include Japan) |
33.2 |
32.9 |
1% |
0.93% |
| New Zealand & Australia |
0.3 |
0.4 |
0% |
-13.68% |
| Emerging Europe |
42.0 |
42.1 |
1% |
-0.35% |
| Emerging Latin America |
73.7 |
70.2 |
2% |
4.95% |
| Other emerging markets |
4.9 |
4.8 |
0% |
2.52% |
| Mainland China & Hong Kong |
98.9 |
100.8 |
3% |
-1.90% |
| Others |
14.7 |
12.1 |
0% |
21.47% |
| Regional Subtotal |
713.5 |
707.3 |
21% |
0.89% |
| TOTAL |
3,387.7 |
3,089.6 |
100% |
9.65% |
Source: Securities Investment Trust and Consulting Association . Categories include both equity and fixed income funds
Fixed income on top
In terms of asset classes, fixed income funds dominate the industry, accounting for half of total offshore assets, which compares to equity assets of around 37%. Among the fixed income fund category, high yield bond funds had the most assets.
Offshore funds by asset class (in TWD bn)
|
August 2017 |
January 2017 |
Market share |
Change |
|
| Equity Fund |
1,253.6 |
1,213.9 |
37.00% |
3.27% |
| Bond fund |
69.9 |
70.8 |
2.06% |
-1.29% |
| High yield bond fund |
995.0 |
960.2 |
29.37% |
3.63% |
| Emerging market bond fund |
333.2 |
203.1 |
9.83% |
64.07% |
| Others |
300.1 |
285.0 |
8.86% |
5.30% |
| Fixed income fund Subtotal |
1,698.1 |
1,519.0 |
50.13% |
11.79% |
| Balance fund |
400.6 |
321.2 |
11.83% |
24.73% |
| Money market fund |
31.5 |
31.6 |
0.93% |
-0.33% |
| Fund of funds |
0.0 |
0.0 |
0.00% |
0.00% |
| Exchange traded fund |
0.3 |
0.2 |
0.01% |
16.14% |
| Others |
3.6 |
3.6 |
0.11% |
-1.11% |
| Total |
3,387.7 |
3,089.6 |
100.00% |
9.65% |
Source: Securities Investment Trust and Consulting Association
