In new statements on the extent of greenwashing in the fund management industry, Desiree Fixler highlights some uncomfortable truths about sustainable investing.
Where previously there was no limit to investments in MBS issued by US federal housing loan agencies, namely Fannie Mae, Freddie Mac and Ginnie Mae, insurers will now be given a maximum ceiling of 50% of their offshore investment limit to such products by the three institutions. Maximum exposure to MBS and collateralised issues by any of the individual agencies will be set at 25%.
Thomas Chang, director at the Insurance Bureau of the FSC in Taipei, explains this will patch up a previous loophole in the regulation, which had led to an example of over-concentration in investments to the MBS by a local insurer. Over the long run, the revision should encourage further asset diversification and risk monitoring.
Furthermore, the FSC says a previous limitation on investments into these MBS or collateralised issues to a credit rating of A-minus or a total score of 680 or above will no longer apply. Chang adds this is a response to insurers who have previously pointed out that not all issues by Fannie, Freddie or Ginnie come with credit ratings. Also, because the explicit backing of the United States government behind these issues, a credit rating is not necessary for determining the quality of these issues.
Chang notes, the Insurance BureauÆs current revision is separate from previous rule changes on asset classification under fair value accounting by the FSC on October 16.
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Already on the rise pre-Covid, investments into data centre assets in Asia have accelerated in the past year, fuelled by interest from investors across the spectrum.
Actively managed funds were also not found to have better odds of higher returns than more passive funds.