Taiwan's biggest investment manager intends to enter the smart-beta arena and widen its range of overseas strategies, amid rising local demand for offshore exposure.
Cathay SITE is ramping up its global strategic efforts with a global equity dividend fund and a Ucits greater China equity fund. Its parent company is eyeing more acquisitions too.
No sooner had Taiwanese fund houses figured out how to survive foreign competition, along come mainland Chinese rivals. The local fund houses are exploring how to stay competitive.
Cathay SITC will launch its first exchange-traded fund in Taiwan this April tracking the FTSE China A50 index in the belief that passive products are the island's new growth driver.
Taiwanese asset managers Cathay and Fuh Hwa will invest the quotas on behalf of their active equity funds, with the former planning a third China-themed product.
ChinaAMC agrees to give exclusive access to Cathay for two years. Its Hong Kong unit will advise Cathay for an upcoming Greater China fund.