Taiwan’s Financial Supervisory Commission (FSC) has granted a securities and investment consultant enterprise (SICE) license to the global bond giant, permitting distribution of its offshore funds to domestic retail and institutional investors, according to a statement from the firm.
Before Pimco obtained the qualification, Allianz Global Investors acted as the master agent for distribution of the firm’s offshore-regulated funds.
After the Allianz transfer to Pimco is approved, the bond giant can act as the master agent for 13 funds under its global investors series. It can manage the local distribution partnership and sell funds directly to local retail and institutional investors.
In addition to a new Taipei office, Pimco has four other regional offices in Hong Kong, Singapore, Sydney and Tokyo.
Mitch Wang has been appointed as senior vice president and general manager for the firm’s Taiwan business. Leading the offshore fund business, he is also responsible for expanding distribution partnerships. Wang will report to Haining Yin, head of Greater China, based in Hong Kong.
Wang, who joined the firm in May, has 20 years of experience in the asset management industry and has held several senior positions, according to the statement. Wang was previously at Fidelity Taiwan, where he held the position of head of intermediary business.
In the first half, offshore fixed income funds continue to dominate the Taiwan market with 48% marketshare, but the asset class as a whole recorded a net outflow of NT$95.26bn ($3.12bn), according to data from the Securities Investment Trust and Consulting Association (Sitca).
High yield bond funds led the outflows, dropping 10.75% to NT$102bn from end-2017.
Pimco funds with the highest Taiwanese investor percentage
| Fund | AUM | Percentage of Taiwanese assets | 3-year performance |
| Global Bond Ex-US Fund | $984.4m | 13.8% | 10.58% |
| Diversified Income Fund | $7.75bn | 9.57% | 13.21% |
| Global High Yield Bond Fund | $4.87bn | 5.29% | 13.96% |
| Emerging Markets Bond Fund | $3.16bn | 5.22% | 14.05% |
| US High Yield Bond Fund | $2.7bn | 5.19% | 18.87% |
