Overview
Registration
8th Taiwan Investment Summit
ETFs, ESG and beyond
03 October 2024 | 09:00 AM - 01:00 PM | Taipei
Overview

The world of investing is bifurcating. On the one hand, exchange-traded funds have become popular investment vehicles. In Taiwan, for example, the size of ETF assets jumped by nearly 74% at the end of January 2024 to US$71.7 billion from end-2022. Taiwan’s market is growing faster than the total for Asia, which crossed US$846 billion as of end-February 2024.

A decade of marginal interest rates triggered a relentless search for yield among investors. Enter the market for private assets, which has grown steadily from its early days to reach US$11.8 trillion in total assets globally at the end of 2023, triple the amount of where it was a decade ago.

The rise of ETFs and private markets is a study in contrast. On the one hand, ETFs are best known as liquid investment vehicles that are attractive for their steady dividend payments. In Taiwan for example, the vast majority who buys them are retail investors who value regular income. Industry estimates that the number is now at nine million individuals, an increase of more than 40% in less than 12 months.

Investing in private assets, on the other hand, is the opposite. These assets are generally illiquid. They also have low correlation with investment returns in public markets. Especially in a year such as two years ago that saw listed equities and bonds perform poorly at the same time, investing in the private market shielded returns and provided a diversification with the added possibility of higher returns.

In 2023, private credit and infrastructure attracted strong interest from private market investors who view these types of private assets as providing a steady stream of income not unlike what attracted investors in Taiwan to ETFs. During the current phase of high interest rates and inflation, which can dampen the performance of traditional investments, they provide a good investment alternative.

In the meantime, ETFs are no longer the preserve of passive strategy that follow an index. Managers have combined liquidity and tax efficiency of ETFs with an active strategy aimed at outperforming their benchmark, which is not unlike investing in private assets, which require active management by managers in these assets.

The Asset is pleased to be hosting the 8th Taiwan Investment Summit. The Summit gathers asset owners, institutional investors, high net worth individuals, family offices, service providers, and other stakeholders to discuss the latest updates in the ETF market and also explore opportunities investing in the private market.

Agenda
03 October 2024
09:00 AM
Registration and coffee
10:00 AM
Welcome remarks
10:10 AM
Keynote address
10:30 AM
Panel one: From strength to strength

Taiwan’s ETF market is a standout when compared with even the larger markets in Asia. Indeed, the market’s 40% compound annual growth rate over the past five years is the fastest in the world. The participation of retail investors is among the highest in Asia accounting for more than half of ETF assets. Among them, appetite for high-dividend equity ETFs, those that track the high-tech sectors such as semiconductor, artificial intelligence, and US bonds is creating the buzz and underpins product innovation.

  • Why is Taiwan’s ETF market growing faster than the rest of Asia?
  • How are recent regulatory measures impacting the market’s development?
  • Will offshore bond ETFs continue to attract the investors in the current environment?
  • What are the views of market participants on the launch of active ETFs?
11:10 AM
Networking and coffee
11:40 AM
Panel two: Uncovering opportunities in private assets

With ample liquidity, Taiwan’s strength in technology, and a focus on renewable energy, interest in private assets among financial sponsors and investors is emerging. Although it is early days, the quest to generate uncorrelated returns, achieve the benefits of diversification, and plugging into the real economy are likely to drive activity in the coming year. Private equity funds, for example, have a surfeit of dry powder looking for assets. On the other hand, Taiwan’s high net worth individuals are increasingly interested in investing in private assets, which is much alike with the rest of the region.

  • What are private assets?
  • What are the different ways investors are able to access the private market?
  • How do private assets fit into an investor’s asset allocation?
  • What types of private assets are popular and what are the advantages they offer?
12:20 PM
Panel three: Navigating the future of sustainability

Taiwan’s claim to fame has been its strong push to develop offshore renewable energy in the past five years, even ahead of the more developed markets in North Asia. In the past three quarters, it can lay claim to another success: the amount of net new money that went into Taiwan-domiciled sustainable funds. This is despite the noise around sustainability, ESG, and their performance. Regulators have played a role in the economy’s sustainability focus. But it is also the case that the financial and investing industry is similarly keen to promote sustainability when it comes to investing for the future.

  • How are regulators looking to further its focus on ESG investing opportunity in Taiwan?
  • What are the considerations that create value for investors when investing in ESG products?
  • How is sustainable finance shaping up in Taiwan?
  • What opportunities and challenges are emerging for both corporates and investors?
01:00 PM
Networking and luncheon
Thank you.
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