Calastone, the largest global funds network, has extended its coverage in Taiwan, now capturing over 95% market share of fund distributors, underscoring the market’s accelerating adoption of automation technologies in its more than US$400 billion[1] asset management industry. Amid rising net fund inflows, which climbed over 30% to US$3.1 billion 1H 2024 from US$2.4 billion in 1H 2023 according to Calastone data, momentum for further growth looks to be building as the market draws domestic and foreign investor interest.
Calastone first entered the Taiwanese market in 2009, and in January 2023 established a new office presence in Taipei. Calastone has since welcomed 12 talented individuals to its local team to support the rapid expansion of its operations and client base. Comprising both domestic hires and international professionals that have relocated from other leading financial hubs like Hong Kong and the United Kingdom, this team brings a wealth of relevant experience and knowledge to successfully drive the company’s next stages of growth.
Complementing Calastone’s now dominant position in automated order routing in Taiwan is the further digitalisation of other critical fund services, including the management of Contingent Deferred Sales Charge (CDSC) data. Calastone currently has three clients live with its CDSC solution, with more expected to go live later this year. Distributing CDSC funds through Calastone’s network has enabled these clients to achieve faster and more accurate fee calculations, seamless ad hoc reporting, and enhanced regulatory compliance.
Justin Christopher, Head of Asia, Calastone said: “Clients and industry participants are increasingly demanding digital solutions that enhance operational efficiency and scale as competitive pressures rise. Equally important is repositioning fund platforms to better meet the needs of end investors through enhanced experiences and unique offerings.”
He added, “Our recent success builds on nearly a decade of trusted relationships in Taiwan. We’ve benefited greatly from our global network, enabling capital flows and providing investors with access to new opportunities. We remain committed to playing a critical role in the future development of Taiwan’s dynamic fund industry.”
The growth of Calastone’s presence aligns with regulatory efforts to bolster Taiwan’s standing as a preeminent asset management hub. The Financial Supervisory Commission (FSC) has been actively promoting and collaborating with the private sector to encourage the prudent adoption of innovative technologies, including tokenisation and artificial intelligence (AI). This month, the FSC has even taken steps to facilitate the trading of active and multi-asset exchange traded funds (ETFs) by the end of the year – broadening the potential scope of products available to domestic investors.
Calastone’s recent achievements mark significant progress toward the company’s mission to help financial institutions embrace innovation and digital transformation across the fund lifecycle, reducing frictional costs and operational risk in the process. Taiwan will continue to serve as a strategically important hub for new growth opportunities and delivering exceptional value to clients across Asia Pacific.
[1] https://www.sitca.org.tw/ENG/FundInf/FI3001.aspx?PGMID=FI3001#
