The Canadian pension fund plans to increase its allocation to the region from 10% to 15% over the coming four years, even as its total assets under management rise.
The FSC says it is already studying the issue with a think-tank formed with experts from the islandÆs stock exchanges, over-the-counter trade operators, the local Accounting Research & Development Foundation, various industry and trade bodies and relevant government bodies on areas where the principles might require fine-tuning for full adoption in Taiwan.
The FSC says the move will take Taiwanese corporatesÆ reporting standards close to the international par, and hence lower their overseas fund-raising costs. It is aimed at further enhancing TaiwanÆs capital markets infrastructure.
The latest announcement follows the regulatorÆs recent decision to revise accounting standards under the International Accounting Standards Board (IASB) rules.
Of the practices that Taiwanese entities will have to adopt under IFRS standards, the fair valuation rule under notice 34 is causing the most concern. The rule would require entities to mark-to-market their assets instead of being able to conceal these losses by reclassifying assets that have dropped in value as æassets for trading purposesÆ to other categories such as æassets held to maturityÆ or æassets held for the purpose of saleÆ.
For the local insurance industry, the debate is likely to focus on notice 40, under which insurers might have to book marked-to-market losses for their assets straight to their profit and loss accounts û a rule that has had more flexibility under the FSCÆs æconvergenceÆ mode.
They have teamed up with each other and with overseas investors to boost investment capacity in real estate and infrastructure investments in Europe and North America.
Asset owners across Asia Pacific weathered some difficult market conditions in 2020. While most emerged from the year successfully, some notable exceptions suffered asset drops.
Thanks to the current rise in yields, the key return driver of the bond market is set to change but its bull run will very likely continue.
Asian institutional investors were generally more optimistic about post-pandemic economic recovery but only 33% were confident about achieving their short-term objectives.