Thu, Feb 24, 2005 - Page 10 News List

Association urges offshore funds sales

By Joyce Huang  /  STAFF REPORTER

Fund managers expressed hope yesterday of launching the sale of offshore funds in May, and urged the government to soon relax restrictions on sales of hedge funds.

The Securities Investment Trust and Consulting Association (證券信託公會) yesterday said it plans to submit a draft proposal on regulating the local sale of offshore funds to the government before the end of this month.

"We hope to begin the sales by the end of first quarter," said Vicki Hsiao (蕭碧燕), secretary-general of the association,.

Hedge funds are high-risk in nature as they use different investment techniques from traditional funds. In this respect, Hsiao said the association would suggest the government allow the offering of such financial products in three steps.

The government could first allow fund managers to sell highly rated mutual funds which invest in overseas hedge funds, Hsiao said.

Then the government could allow private offerings of hedge funds before the relaxation on public offerings, she said.

Hsiao said that the association has urged regulators to help upgrade investment consultants and fund managers so that they can expand into the wealth-management business. The association said the nation's fund managers managed a total of NT$2.57 trillion (US$82.5 billion) in assets as of last month -- a 3.49 percent growth from NT$2.48 trillion in December.

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