Asia Asset Management: Consider Taiwan
Although Taiwan's population is only 2% of the size of mainland China's, and its economy is about 6% of mainland's GDP, a number of strategically-minded foreign asset managers have found remarkable success on the island, thanks to Taiwan's open regulatory environment, solid economic fundamentals, and growing wealth. Taiwan's retail market in particular has fostered considerable success for offshore funds, which represent 60% of total mutual funds assets.
"Taiwan is not typically seen as one of the 'giants' of Asia," says Alain Le Couédic, a Partner at Roland Berger Strategy Consultants in Asia and one of the authors of the study. "But its asset management market offers significant opportunities that others do not." The study credits Taiwan's attractiveness to a growing appetite for foreign assets, a large pool of relatively low-debt investors who hold most of their wealth in financial assets, and an asset management market that has grown 10% per annum for the past six years straight.
The study also finds that Taiwan's regulatory and competitive environment is more friendly than those of other regions or countries to foreign players that want to establish a footprint in Asia.