This latest development for the Swiss manager means it can now distribute its stable of funds registered in Taiwan directly to domestic investors as a master agent, by-passing local banks and other financial institutions.
These products include the flagship $5bn UBAM Global High Yield Solution fund, as well as the UBAM AJO US Equity Value, UBAM Corporate US Dollar Bond, UBAM Emerging Market Debt Opportunities, UBAM Europe Equity and UBAM SNAM Japan Equity Value funds.
Offshore funds still dominate the Taiwan investment landscape, although the number and size of onshore funds are increasing.
There were 1,035 offshore funds with assets of NT$3.19trn ($103bn) as of 31 December 2018, compared with 859 onshore funds – whose growth Taiwan’s financial authorities are keen to encourage – with NT$2.5trn of assets, according to data from the Securities Investment Trust & Consulting Association (Sitca).
|
Date (31 Dec) |
2014 |
2015 |
2016 |
2017 | 2018 |
% change 2014 – 2018 |
| Onshore funds (number) |
646 |
672 | 725 | 800 | 859 |
+33% |
| Onshore funds (size – NT$) |
1.97trn |
2.20trn | 2.12trn | 2.32trn | 2.57trn |
+30% |
| Offshore funds (number) |
1025 |
1024 | 1041 | 1045 | 1035 |
+1% |
| Offshore funds (size – NT$) |
3.32trn |
3.08trn | 3.08trn | 3.50trn | 3.19trn |
-3.9% |
Source: Securities Investment Trust & Consulting Association
There are 40 master agents among 69 offshore institutions, which include most recently Janus Henderson, Pictet, Capital Gateway Securities, Amundi and Cathay Securities, according to Sitca.
An offshore fund manager has to appoint a single master agent to represent it in the offering and sale of its funds in Taiwan, although a master agent may represent more than one offshore institution. The Financial Supervisory Commission (FSC) regulations also allow the master agent to mandate an approved Securities Investment Trust Enterprise, SICE, securities broker, bank or trust to be a sub-distributor for offshore funds.
UBP’s Asia CEO for asset management, Ted Holland, described the SICE license approval as “a major milestone” for the firm’s strategy for the region. The new unit in Taipei is called UBP Asset Management Taiwan Ltd.
UBAM Global High Yield Solution (USD): 3-year performance
