Fri, Dec 07, 2018 - Page 12 News List

Taiwanese prefer stocks, active investment: report

By Crystal Hsu  /  Staff reporter

Taiwanese investors are more willing than their global peers to increase their stock holdings in times of a market rout and prefer an active investment strategy, a survey by UK asset management firm Schroders PLC found.

As many as 31 percent of Taiwanese investors would overweight stock holdings during a tumble, second only to Singapore’s 36 percent, the firm said, citing polls among 22,000 investors in 30 countries conducted over three years.

Worldwide, only 26 percent of investors would do the same, as most prefer cash holdings until uncertainty settles, it said.

HANDS-ON

Asian investors showed higher risk appetites, with Japan (33 percent), India (33 percent) and Indonesia (32 percent) also making the global top five, it said.

Taiwanese investors also favor an active investment strategy, with 44.3 percent qualifying for this category judging by their portfolio and transactions, the survey showed.

That is higher than the Asian average of 43.1 percent and global average of 42 percent.

Active investing takes a hands-on approach and requires a portfolio manager. The goal of active money management is to beat the stock market’s average returns and take full advantage of short-term price fluctuations.

Only 33.2 percent of Taiwanese investors are classified as passive, lower than an average of 34.6 percent in Asia and the global average of 36.5 percent, the firm said.

Passive investment strategies involve a buy-and-hold mentality, resisting the temptation to react to or anticipate the stock market’s every next move.

HEDGING

A majority of local investors use multiple-asset funds to hedge against inflation and market volatility, followed by bond funds and stock holdings, Schroders said.

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