Departing CEO Fiona Reynolds tells AsianInvestor how she hopes that, within a five-year period, human rights will be as important as climate issues for most investors.
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.
The NGO's election of a Japanese insurer board member promises to improve ESG stewardship in fixed income, plus bridge the gap between investors and policymakers.
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Omers to buy Indian renewable power producer; GPIF made record cut to treasuries weighting; AustralianSuper's private debt investments to hit A$15 billion by 2024; Hong Kong Exchange Fund's investment income recovers for H1 2021; China's securities regulator claims to seek closer cooperation with US; Allianz wins approval from Chinese regulators to launch asset management firm; and more
Non-deliverable forwards are now at the forefront of mind for investors in the region after the pandemic, despite some regulatory concerns.
Future Fund internally appoints deputy CIO for portfolio strategy; CPPIB promotes Suyi Kim to run global private equity; NPS extends CIO term for second time; Willis Towers Watson appoints Australian investments head; Knight Frank promotes Apac director to run global capital strategies; Natixis Investment Managers names head of distribution for Emea.