Taiwan’s stock exchange and Bloomberg Index Service have launched a Taiwan-US multi-asset index.
The Bloomberg TIP Taiwan and US Momentum Balanced Multi-Asset Index is the first cross-border multi-asset benchmark in Taiwan, and aims to shape an investment strategy that balances risk diversification and stable returns, Taiwan Index Plus Corporation, a unit of the Taiwan Stock Exchange, says in a statement on June 12.
The benchmark integrates the firm’s customised Taiwan momentum index and the Bloomberg US Treasury 20+ year total return index.
It will give investors “a simple and convenient way to meet personal financial planning and long-term asset allocation needs in a volatile market environment”, according to Lin Hsiu-Ming, chairman of Taiwan’s bourse.
The index could potentially serve as the underlying benchmark for multi-asset exchange-traded funds, which were approved by the Financial Supervisory Commission last year. The first of these ETFs are expected to be launched in the third quarter of this year.
Lin says the bourse will continue collaborating with international index providers to support the growth of Taiwan’s ETF market.
