The Dutch pension asset manager's Asia Pacific head of real estate says his team has just had one of its busiest years ever and that 2021 is looking similarly promising.
Taiwan's rules were first issued in May 2006, laying out required credit ratings, circumstances under which derivatives could be employed, limits on asset exposure to such instruments, qualifications for investment professionals handling these, and risk-management procedures.
Initially derivatives were only allowed for hedging purposes but the rules were relaxed in May 2007. Requirements on risk-based capital were eased, as were maximum allocations to overseas-issued instruments or structured products. This allowed insurance companies to use derivative products to enhance investment returns.
Earlier this year, the FSC also raised the percentage limit allowed on overseas investments and allocation to alternative investments.
However, insurers have complained that the FSCÆs relaxation measures had opened up new investment possibilities on paper, while tying up their hands through tighter risk-based capital requirements.
With the removal of these rules for once and for all, insurers will be given a free rein on how they wish to implement portfolio investments without the fuss of filing detailed proposals or seeking the FSCÆs approval.
FSC Commissioner Lee Shyan-Yan notes the regulatory agency is keen to revamp how it regulates financial institutions. As has happened recently in Japan, and will be formalised in Korean law early next year, Taiwan is moving towards a UK-style principles-based rulebook. This is intended to enhance the Taiwanese insurance sector's regional competitiveness, as well as to make Taipei a genuine financial-services hub within Greater China.
New rules and further relaxation on private equity and hedge fund investments are expected to be introduced later this year.
Sunsuper and QSuper appoints CIO for combined entity; State Street appoints heads of HK and Taiwan; Nothern Trust rebuilds Apac team; Manulife IM names emerging markets fixed income CIO; RBC Wealth Management hires four into HK; Lombard Odier hires two senior equity managers; Allianz Global Investors appoints Asia hand as equity CIO; and more.
Investors from China and the US are expected to continue buying assets in each other’s markets despite the blacklist of Chinese firms with military and surveillance ties.
Stronger government actions are needed to meet the Paris Agreement goal of limiting global temperature rise to 1.5 degrees, investors such as Hesta and CDPQ signed in a statement.
AsianInvestor explains why we chose the winners of the second half of our 2021 fund manager winners, by major local markets.