Fidelity, Yuanta form funds alliance


Michelle Hsu,The China Post

Fidelity Investments Securities (Taiwan) yesterday announced a strategic alliance in mutual funds sales with Yuanta Core Pacific Securities through its FundsNetwork, a mutual fund trading platform introduced to the island in early March.

“It marks an essential step for us to internationalize the services offered to local investors,” Lee C. Chang, president of Yuanta Core Pacific, said yesterday, during the celebration for the alliance. The collaboration with Fidelity will help Yuanta Core Pacific strike a balance in the services for stocks, bonds and mutual funds.

“Investors will have more alternatives for their investment portfolio while brokers will have a wider product lineup to present to their customers,” stressed Chang. He added, “Yuanta Core Pacific will make its assets management services more comprehensive through the strategic alliance, fulfilling the one-stop shopping concept in today’s financial market.”

Fidelity Investments, founded in 1946 and headquartered in Boston, currently serves 4,500 funds in the U.S. and 565 funds in the global markets. The funds traded on the FundsNetwork in Taiwan have exceeded 70, including funds issued by either Fidelity or other international mutual funds companies. Fidelity Investments established a securities unit, Fidelity Investment Securities (Taiwan), earlier this year, following the Securities and Futures Commission’s (SFC) announcement last November allowing securities firms to extend their brokerage services to the mutual fund sector.

Yuanta Core Pacific, which claims to be the largest securities firm for the Chinese society in the world, currently has 85 branches staffed with 1,500 brokers. It is one of the few securities firms that has extended its business into the mutual funds sector under the market deregulation policy. Previously, banks were the only mutual funds sales outlets in Taiwan.

Bruno Lee, general manager of Fidelity Investments Securities (Taiwan), anticipates a great market potential for mutual funds in Taiwan, saying that the investments on offshore mutual funds, estimated to worth US$10 billion, currently only accounts for 4-5 percent of the total savings of local residents. “The market will grow even faster under the government’s market deregulation policy,” he said.