Standard & Poor’s says asset volatility will lead insurers to invest more in offshore debt, a need that could raise questions for their regulators.
The state pension fund particularly wants to raise its overall foreign investments but will slow its appointment of external managers following last year’s bribery scandal.
Taiwan’s state pension fund has pledged to regulate external managers more strictly after the bribery scandal, but the additional red tape could turn away some fund houses.
The state pension fund is strengthening internal controls, but experts say more action is needed, such as raising pay for investment staff to make them less susceptible to graft.
After earlier signs of weakening Asia's ESG fund flows leapt up in the third quarter. Japan, Taiwan and South Korea registered particularly strong demand, according to Morningstar.
The Taiwanese pension manager's investment return rate has dwindled this year, so it is calling for AI-driven asset managers to help it expand its overseas assets exposure.