Calastone Network Reveals Bullish Investor Appetite for Funds across Taiwan

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  • Taiwanese investors have been more active in 2021 compared to 2020
  • Taiwan market remains positive with significant surges in buys across all fund types.
  • Equity funds saw outflows during the May 2021 COVID outbreak, but Taiwanese investor appetite has been gradually recovering.

TAIPEI, Oct. 26, 2021 /PRNewswire/ — Calastone, the largest global funds network, today reveals that investors in Taiwan have been more active in 2021 than in 2020, with strong investor appetite for funds seen against a backdrop of robust GDP growth. The data also reveals insight into investor behaviour in the months during and following Taiwan’s May 2021 COVID-19 outbreak, where equity funds saw outflows. Since the outbreak equity funds have shown signs of recovery as Taiwanese investors increase their fund holdings.


Subscriptions Surge

  • Overall fund buys have surpassed sells every month since December 2020 and reached a peak in March 2021.
  • There was a significant surge in equity fund purchases in February and March 2021, with both months seeing inflows to equity funds total £835m.
  • Mixed asset funds have seen inflows all year, with significant surges in purchases seen in Q1 and Q3 2021.
  • Inflows take place against a backdrop of strong Taiwanese GDP growth, with a 7.43% growth rate in real GDP in the second quarter of 2021, with the economy predicted to grow by 5.46% in 2021[1].
  • Taiwanese investors have been more anxious to invest in bond funds, with sells outweighing buys since April 2021. Across the year, six of the last nine months saw outflows.

COVID Impacts Investor Appetite

  • Taiwan faced a surge in COVID-19 cases in May 2021 after months of sporadic local infections, leading investors in Taiwan to become net sellers of equity funds in May and June. Equity fund sells reached £15.8m in May and £20m in June, compared to a large £549m of inflows in March.
  • Taiwanese investor appetite for equity funds has been gradually recovering since the COVID outbreak, especially in July and September 2021, when we saw relatively significant surges in equity fund purchases. However, recovery temporarily stalled in August 2021 with a slight drop in equity fund buys.
  • Net buys across all fund asset classes have generally recovered from July onwards.

About Calastone

Calastone is the largest global funds network, connecting the world’s leading financial organisations.

Our mission is to help the funds industry transform by creating innovative new ways to automate and digitalise the global investment funds marketplace, reducing frictional costs and lowering operational risk to the benefit of all. Through this, we generate the opportunity for the industry to deliver greater value back to the end investor.

Over 2,800 clients in 49 countries and territories benefit from Calastone’s services, processing £200 billion of investment value each month. Calastone is headquartered in London and has offices in Luxembourg, Hong Kong, Taipei, Singapore, New York, Milan and Sydney.

A word about methodology

We analysed buy and sell orders from across our network in 2020 and 2021, tracking monies from IFAs, platforms and institutions as they flow into and out of investment funds. A single order is usually the aggregated value of a number of trades from underlying investors passed for example from a platform via Calastone to the fund manager.

We have not adjusted our figures for our market share. Any figures that appear in this report therefore only refer to value that passes over our own network.