Taiwan’s mutual-fund balance dropped 4.91 percent last month, as some foreign funds moved out of the local market amid growing global uncertainty, JPMorgan Asset Management Ltd said.
Mutual funds dropped by NT$112 billion (US$3.54 billion) to NT$2.17 trillion, falling below the NT$2.2 trillion mark for the first time in six months, as global funds sought returns in other investment instruments, JPMorgan Taiwan said.
The trend is fueling concern that foreign funds might flow to mature markets ahead of a potential interest rate hike by the US Federal Reserve in December.
“In the past, equity and multi-asset funds gain when currency funds decline, but fund managers prefer to stay on the sideline this time around until the uncertainty stabilizes,” JPMorgan Taiwan said.
Currency funds stood at NT$860.1 billion last month, down 10.46 percent from one month earlier, the fund house said. Altogether, currency funds plunged 14.78 percent for the first nine months.
Equity funds saw a 0.4 percent decline, while onshore and offshore fixed-income products retreated 4.89 percent and 1.82 percent respectively, it said.
The light turnover in the local bourse reflected the waning investment interest.
Mutual funds trimmed another NT$37.16 million worth of local shares yesterday after cutting their positions by NT$365.08 million last month, Taiwan Stock Exchange data showed.
Net pullout accelerated to NT$2.05 billion this month, while foreign funds lowered their positions by NT$514.62 million, according to bourse statistics.
END TO SPECULATION: The hotel’s management contract has been extended, despite reports that it wanted to end its alliance with Hyatt Hotels over a deal with Riant Capital Singapore-based Hong Leong Hotel Development Ltd (豐隆大飯店股份) yesterday said it has extended a management contract to ensure the continued presence of the Grand Hyatt brand in Taipei, ending rumors that the two sides were parting ways. “We are pleased Hyatt is able to come to terms on the extension of the management contract of Grand Hyatt Taipei,” said Kwek Leng Beng (郭令明), executive chairman of City Developments Ltd (城市發展) and Millennium & Copthorne Hotels Ltd (千禧國敦酒店). Hong Leong Hotel Development is a subsidiary of Millennium, and both fall under the Hong Leong Group (豐隆集團). The Grand Hyatt Taipei (台北君悅大飯店), owned and built by
’WHITE BOX’: The open platform would give local firms access to Cisco’s cloud-based mobile network to develop 5G telecom equipment and tap into the global market The Ministry of Economic Affairs (MOEA) yesterday introduced a new 5G “open lab” in collaboration with US-based information technology and networking giant Cisco Systems Inc to address the rapidly growing “white box” 5G networking equipment market. The open lab will be a platform where Taiwanese manufacturers can access Cisco’s cloud-based mobile network to develop their own 5G telecom equipment, such as small-cell base stations, network switches, modems and Internet of things (IoT) devices, a ministry statement said. The open platform would allow Taiwanese manufacturers to tap into the lucrative 5G telecom equipment market, which was previously monopolized by Nokia Oyj, Ericsson AB
Nintendo Co is raising its target for Switch production to about 25 million units this fiscal year, people familiar with the matter said, as the ongoing COVID-19 pandemic keeps lifting demand and component shortages ease. The Kyoto, Japan-based company, which in April hiked orders to 22 million units by March next year, is asking partners to tack on another few million units, said the people, who did not want to be identified discussing internal goals. Assembly partners plan to work at maximum capacity through December. The new production target suggests that Nintendo is likely to outperform its Switch sales forecast of 19 million
‘BIG LOSS’: This year might see the last generation of Huawei’s Kirin chips, as their production would stop next month because they are made using US technology Chinese tech giant Huawei Technologies Co (華為) is running out of processor chips to make smartphones due to US sanctions and would be forced to stop production of its own most advanced chips, a company executive has said, in a sign of growing damage to Huawei’s business from US pressure. Huawei, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. Washington last year cut off Huawei’s access to US components and technology, and those penalties were tightened in May, when the White House barred vendors worldwide from using US
RSS