Amid market volatility in a COVID-19 world, 台湾投资者, 就像世界上其他地方一样, were quick to shift their focus inwards – to domestic bond and equity products. To gain a better understanding of Taiwan’s investment landscape, I recently held a fireside chat with Julian Liu, 主席, Yuanta SITC at 存’s recent North Asia Virtual Forum, where he shared his insights on how the country is navigating this changing environment.
Thanks to strong economic performance in 2020, Taiwan minimized the need for nationwide fiscal incentives and tax concession. 根据惠誉评级, economic growth in Taiwan is stronger than expected and it has affirmed Taiwan’s ratings at AA- in September 2020, with outlook categorized as stable.
在这样的背景下, 刘共享, “We have seen a rise in Exchange Traded Funds (ETFs), which can be traded on stock exchanges, 就像普通股票一样. The rising interest could be due to investors turning their attention from mutual funds to ETFs where lower fees are being charged. This scenario is also happening elsewhere, including the U.S. 就美国而言.S., there are also other reasons to explain the quick switch to ETFs, such as tax benefits that investors can enjoy over mutual funds. We are also optimistic about our forecast for equities – due to excellent results in the high-tech sector and our stock market performances in 2020.”
Exploring Investor Profile and Interest
While it will take time for the Taiwanese economy to fully recover despite the current optimistic outlook, Liu noted that interest in environmental, social and governance (ESG) is no longer restricted to only wealthy clients. A broader group of investors including the millennial generation are adding ESG products in their investment portfolio – also aligning with the changing global market investment landscape.
"Studies have shown that today’s savvy investors are putting their money in investment funds that contribute to the good of the society."
COVID-19 has also contributed to greater interest in sustainable investing here in Taiwan as well as elsewhere."
详细阐述投资者组合, 刘补充道, “The investor demographic in Taiwan is also expanding to include Generation Z in addition to the millennials. Of the more than 1 million of new investment accounts opened in 2020, Z世代约占70%. 展望未来, we will need to tailor our investment options and solutions according to the risk appetite, investment focus and return on investment criteria of our broad group of investor-mix. It is also noteworthy to highlight that there has also been a strong focus on Smart-Beta strategies to improve diversification and mitigate investment risks.”
通过多元化增长财富
减少风险暴露, investors are increasingly seeking to adopt a multi-asset strategy, which may be viewed as a double-edged sword Liu cautioned. 他透露, “Risk adverse investors prefer outcomes that provide a steady and predictable return on investments, particularly in the face of adverse market conditions and unpredictable market cycles. This strategy has proven to be successful here as firms have been generating alpha returns in core and satellite assets in the past year. While long term growth in a “play-it-safe” environment can usually be achieved via diversification, the interconnectedness of today’s financial markets may impact the performance of more than one asset class at any one time. Taking an agile approach to investing to react rapidly to changing market conditions is key to investment success.”
充电前
而高科技等行业, medical and fund management and brokerage houses continue to perform well throughout the crisis, the rest of the industries in Taiwan are not spared by the global slowdown in economy activity. Firms in weak performing sectors will need to re-invent to stay relevant and hence survive.
展望未来, 刘观察, “随着我们走向需求主导的世界, more customized solutions are being developed as opposed to off-the-shelf products – to cater to specific market needs. ETF funds is a good example where we can meet the investment needs of a wide spectrum of investors with a mixture of equities and bond products for domestic and cross-border requirements.”
他补充说, “While we have always been a forerunner of digital transformation – given our strength in the high-tech sector, going digital is now a must have for us to continue to compete and cooperate effectively within Asia Pacific and globally.”