MILLIONAIRES’ MARKET:
Banks and asset managers are racing to offer more private-market products to high-net-worth clients in Taiwan as their fortunes swell
UG Investment Advisers, a hedge fund overseeing US$3.7 billion, is targeting Taiwan’s wealthy as a new source of capital, betting on a surge in private fortunes fueled by the nation’s artificial intelligence (AI) boom.The Singapore-headquartered firm signed a deal with Taiwan’s E.Sun Commercial Bank Ltd (玉山銀行) last month to distribute one of its long-short equity funds, its first tie-up with a local lender. The move marks a homecoming of sorts for the hedge fund, which has roots in Taipei, but has largely relied on offshore investors such as Asian and European family offices for almost three decades.
A teller counts NT$1,000 banknotes at a bank in Taipei on Feb. 23, 2017.
“AI is rapidly creating new wealth in Taiwan, while the regulatory environment is becoming more favorable as the government pushes to develop the island into a financial hub,” UG Investment chief operating officer Brandy Chen said in an interview. “The stars are aligned for us to enter the onshore market.”Banks and asset managers in Taiwan are racing to offer more private-market products to high-net-worth clients as their fortunes swell. The wealth boom is being fueled by the nation’s buoyant economy and stock market, underpinned by local chipmakers and sprawling supply-chain companies.
