Index shows that interest in mutual funds still declining

By Crystal Hsu  /  Staff reporter

Wed, Oct 31, 2012 - Page 14

JPMorgan’s latest Asset Management Taiwan Regular Savings Plan (RSP) shows declining local investor interest in mutual fund products for a fourth straight quarter amid economic uncertainty.

The index, which derives its value from quarterly surveys on the number of RSP depositors and amounts deposited, as well as new RSP accounts, fell to 50 in the last quarter from 57 in the second quarter, suggesting Taiwanese investors are lukewarm about investment fund purchases, JPMorgan Taiwan vice president Alex Chio (邱亮士) said.

A value larger than 50 suggests active demand for mutual funds, while a lower score indicates poor reception. The index fell to a low of 7 in the second quarter of 2005 and climbed as high as 94 in the fourth quarter of 2007, JPMorgan said.

JPMorgan Taiwan commands the largest mutual fund market share in terms of RSP customers, positions and deals at 14 percent, followed by 10 percent each for Yuanta Securities Investment Trust Co (元大投信), Capital Trust Investment Corp (群益投信) and President Investment Trust Corp (統一投信), according to securities and trust association data.

The index, which polled 3,829 investors between Sept. 22 and Oct. 5, tracks fund purchase behavior over the past 12 years. TAIEX equity funds are the most popular among local investors with 48 percent, followed by emerging markets at 16 percent and Asia-Pacific markets at 15 percent, JPMorgan e-commerce executive director Royce Huang (黃登榆) said.