"Most of these actually lack sophistication and experience in foreign market funds. As a result, Taiwan's consumers will not receive first class service in the provision of a foreign portfolio investment."
Jardine Fleming SITC (
Presently, Jardine Fleming manages total assets of NT$64 billion, the fourth-largest amount in the fund industry. The total fund size of its five foreign equity funds is the largest of all the local fund companies.
An executive from the company said it is planning to apply for another two foreign funds -- a US technology fund and a global equity fund.
The banking industry will also benefit with its provision of custodian services, analysts said. The custodian fee structure for foreign funds is generally between 0.26 and 0.35 percent of the fund's total assets.
Jardine Fleming's major competitors, including Capital (
As a result, analysts said many qualified fund companies will be competing in the short-term to receive the first applications for offshore investments.
The strong demand could create problems for the securities commission officials if the total fund size of these applications were to quickly exceed the NT$60 billion ceiling.
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