A 2021 Revisit on Taiwan Mutual Funds

I've revisited one of my past works, relooking at Taiwan's mutual funds industry. I'll further update this work to include more recent data of 2021. That being said, the historical boom into Taiwan's Mutual Fund industry is unprecedented. We've seen large issuance of Fixed Income ETFs from 2017 to 2020, which coincided with the slowdown in Formosa Bond issuance.

How is the market digesting such large liquidity? How does this translate to the real economy? Is this simply an arbitrage? We've seen a rally in the equity market - with foreign institutional investors and funds driving the series of bull runs. Excited to see how the different market players further develops the depth and breadth of Taiwan's financial infrastructure and market in 2022.

Nonetheless, as a Banker, we can use this data to:

1. Assess the flow of money and whether or not the concentration of such money in one industry is healthy or not.
2. Who gains? Who losses? How can we drive revenue from such data?
3. What are the regulatory barriers to entry for new asset managers, new fund issuance and new custodians?

Above is an in-depth analysis on Taiwan Cooperative Bank's Prop Assets, existing Asset Under Custody and estimated revenue pool from fees earned from being master custodian.