Cathay to manage mutual funds for UBS

April 8, 2005

Cathay Securities Investment Trust Co. will begin managing five investment funds worth a combined NTD 16 billion for UBS Global Asset Management Taiwan, the partners announced in mid-March. As CSIT currently manages eleven funds worth NTD 54.5 billion, this deal will bring the total value of its fund management business to over NTD 70 billion.

This partnership represents a pairing of financial giants and will permit each side to benefit from the other's strengths. CSIT will be able to take advantage of UBS's international investment experience, while the Swiss financial powerhouse will be able to exploit Cathay's extensive distribution channels to promote its funds in Taiwan.

UBS Global Asset Management Taiwan says that, with the handover of these domestic funds to CSIT, it will now concentrate on the promotion of its two international mutual funds in Taiwan.

CSIT manages investment funds for Taiwan's largest financial holding company, Cathay Financial Holding Co., and United Bank of Switzerland is Europe's second leading mutual fund manager.

This is the second foreign firm in Taiwan to transfer mutual funds to a local manager. Zurich Securities Investment Trust placed control of its mutual funds in the hands of Taiwan Life Asset Management in May 2004.

The total value of the 467 mutual funds in Taiwan rose 0.19% to NTD 2.57 trillion from January to February, according to the Securities Investment Trust and Consulting Association of the Republic of China. There are presently 45 domestic investment trust companies in Taiwan.

(Central News Agency, Taipei Times)

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