Responsible investing includes allocating to poor-ESG performing EM countries and helping them shift to greener solutions, instead of divesting completely, experts said.
It is handing the work to HSBC, following changes to TaiwanÆs securities law last year that made it possible for fund managers to shed non-core activities.
HSBC has been the first to set up a Chinese-language fund administration platform in Taiwan. Invesco will be its second client, after Prudential Asset Management û but the first for transfer agency (TA).
TA û running the registrar of fund subscribers and redeemers û is hard, nitty-gritty work that fund managers often have to do themselves, if they lack confidence in a third partyÆs ability to get it right. Any error will anger clients or distributors, who will complain to the fund manager; they may not even be aware that the function is handled by another party.
Outsourcing TA is brand new in Taiwan where regulation and market practice have kept it in-house û and where no custodian had the wherewithal to provide the service. HSBC invested in a Chinese-language platform specific for this market, sensing an opportunity to gain enough scale to make the service work for it and for its clients. Signing Invesco appears to have justified the effort.
Outsourcing of fund administration and related functions is becoming more prevalent in several regional markets, including Korea and India, thanks to new regulations that explicitly allow it. For many global fund houses entering these markets, it is a relief to outsource if they can avoid building a local infrastructure. Locally based fund groups, meanwhile, may look to outsource backoffice work as they offer international products to their clients.
ôWiring Asiaö, a payments and securities services supplement to the September edition of AsianInvestor magazine, looks at back- and middle-office outsourcing in detail.
Inflation, fluctuating interest rates, Covid-19 shutdowns, and sporadic reopenings have led to bouts of volatility in the market, with tech stocks bearing the brunt of the selling over the last month.
Amid today’s macro landscape and the need to rethink portfolio planning, asset owners in Asia Pacific are more eagerly embracing responsible investing, says Nuveen’s Simon England-Brammer.
Aware Super appoints deputy CIO and head of governance; AustralianSuper promotes chief risk officer to replace Paul Schroder; Raffles Family Office adds two new roles to independent advisory board; Amundi appoints South Asia CEO; Barclays names China chief executive; Zico hires head of advisory in Singapore; Capital Group names head of HK client group; and more
Nearly 50% of institutional investors and family offices in Asia Pacific intend to increase the number of external managers for their thematic investments in equities over the next 12 months.