Shin Kong merges investment arms, leveraging resources

New Light Asset Management Co (新昕投信) and Shin Kong Investment Trust Co (新光投信) -- both investment trust arms of Shin Kong Financial Holding Co (新光金控) -- officially combined into one entity on Monday, with Shin Kong Investment Trust the surviving entity, the financial holding firm said yesterday.

The merger made Shin Kong Investment Trust the 13th biggest investment trust firm in Taiwan, with assets totaling NT$68.5 billion (US$2 billion) under management and a market share of 2.78 percent, the company said at a press conference.

"We hope to boost the amount of assets to NT$70 billion next year," Shin Kong Investment Trust Chairman Philip Wu (吳昕紘) said.

The company expected to squeeze into the top 10 players, with assets under management exceeding NT$100 billion in the next few years, by being a general agent of overseas mutual funds and leveraging parent financial holding firm's resources, Wu said.

Meanwhile, Shin Kong Financial declined to confirm or deny rumors of a contract with China Southern Airlines (中國南方航空) to form a life insurance joint venture in China.