Aviva Investors is set to launch three new products in Taiwan and strengthen its distribution team there after securing a Securities Investment Consulting Enterprise licence last week.
The licence, granted by the Financial Supervisory Commission (FSC), allows the UK asset manager to open a subsidiary and offer a range of products in Taiwan to both retail and institutional investors.
Craig Bingham, Aviva’s Asia-Pacific chief executive, says Aviva will launch one mature market fixed-income fund for risk-averse investors and one commodity/resources equity fund.
The details of the third product are still being finalised, but Bingham hints that Aviva’s Singapore team is looking at real estate opportunities in Asia, including premises for logistic use and undervalued property in markets starting to recover from the financial crisis. The investment approach could be funds directly invested in physical properties or listed Reit funds.
Aviva has been working with its master agent First Taisec in Taiwan for the last two years and has two segregated mandates – global high yield and emerging market bonds, which are managed out of Chicago and London, respectively.
Through First Taisec, Aviva distributes 13 registered Sicav funds in Taiwan covering equities, fixed income, money markets, Reits in Europe, Asia-Pacific, emerging markets and global markets. A new fund – a global aggregated bond fund – will be added pending FSC approval.
Bingham notes that with the right framework in place, “we can begin to create a more meaningful presence and build stronger relationships with our clients”. With this aim, Aviva is seeking to expand its Taiwan sales team from three to six.
He adds that the wealth accumulated over the years in Taiwan’s mature and sizeable market offers Aviva “distinct cross-border opportunities” to offer products manufactured in the US, Europe, Australia and Singapore. In addition, the company will explore opportunities in managing pension mandates in Taiwan.
Having Taiwan as a distribution office, Aviva has also built a product team based in Singapore and Australia to serve its clients in Asian markets.
Asset management in Taiwan requires a Securities Investment Trust Enterprise (Site) licence and/or a Securities Investment Consultant Enterprise (Sice) licence. Sites are allowed to organise, sell and manage mutual funds in Taiwan, and Sices are permitted to sell and manage overseas mutual funds.