Taiwanese exchange-traded fund assets surged almost 50% in the first eight months of the year driven by growing investor interest in passive investments, and may generate roughly 50% more management fee income for the asset management industry in 2024 than in 2023, according to Keystone Intelligence, a Taipei-based investment consulting firm.
The 246 Taiwan-registered ETFs had NT$5.8 trillion (US$180.2 billion) of total assets as of end-August, up 48.7% from NT$3.9 trillion at the end of 2023. The ETFs accounted for 64% of onshore fund assets in August, up from 53% a year ago.
The top ten ETF managers earned around NT$8.9 billion of combined management fees from January to August, compared to NT$9.08 billion in all of 2023 and NT$7.08 billion in 2022, and “their annual management fees are expected to top NT$13.5 billion in 2024”, Donna Chen, founder and president of Keystone Intelligence, predicted in a commentary issued this week.
Yuanta Securities Investment Trust Co and Cathay Securities Investment Trust Co have the most assets among the 16 ETF managers in Taiwan.
“They’re the only two ETF managers that have surpassed the NT$1 trillion mark, although Fubon Asset Management is working hard to close the gap,” Chen tells Asia Asset Management.
Yuanta had NT$1.79 trillion of ETF assets as of August. Cathay and Fubon had NT$1.01 trillion and NT$916.5 billion of assets, respectively.
