Concern over the trading scandal at Societe Generale spread to Taiwan yesterday, with some investors rushing in to redeem holdings in funds under management by the French bank's subsidiary, Societe Generale Asset Management (SGAM).
Taipei-based distributor, Grand Cathay Securities Investment Trust (
In a written statement, Grand Cathay said that although SGAM is a subsidiary of the French bank, its management and capital are independent of Societe Generale Group and no irregularities had been found in the management of the 13 SGAM funds.
The 13 funds include euro and US dollar funds, Japan and emerging market funds, as well as gold, mining and energy-related securities funds, Grand Cathay said.
However, a minority of fund investors decided to redeem their holdings yesterday, which, some financial experts warned, might negatively affect the funds' performance and cause a liquidity crunch if more investors were to cash in and create a domino effect.
The Financial Supervisory Commission also said yesterday that the commission had received no reports of irregular cash movement at Grand Cathay, which is required to report any huge turnover in fund redemption.