The NT$88 billion $2.9 billion life insurance department of Central Trust of China is considering outsourcing some assets to external fund managers to get exposure to international equities, says president Alex Wang Jiunn-chih.
CTC, which is wholly owned by Taiwan's finance ministry, has just received approval to raise its quota of international assets from 22% to 30% and is likely to add foreign equities to its portfolio.
Although currently 19.76% of its assets are already invested abroad, these are mainly in fixed-income securities or mutual funds, mainly US agency debt, which provides a better rate of return than domestic government bonds after hedging costs. The...
