Digital Digest: Calastone, Taiwan

Editorial Staff

15 June 2023

Calastone
, the global funds network, has introduced its Contingent Deferred Sales Charge funds solution in the Taiwan market. CDSC funds – aka Class B Share funds – are known for cutting market volatility because investors are incentivised with reduced fees if they hold investments for longer periods.

In Taiwan alone, the number of Class B Shares has grown 98 per cent since 2017 because the Financial Supervisory Commission has made moves to encourage them. However, their benefits have been overshadowed by the complex processes needed to handle them, Calastone said in a statement yesterday.

“Until now, asset managers have not had a digital, accurate, or real-time view of investor holding periods. Similarly, transfer agents have relied on an inefficient, costly and manual process to collect information and accurately calculate the fee charges, as they have not had a clear view of the investment holding periods,” Calastone said.

The new solution uses the technology enabled by Calastone's Distributed Market Infrastructure.

"Despite the benefits that Class B Share funds present, the traditional model for distributing them has been very manual and expensive,” Justin Christopher, managing director, head of Asia at Calastone, said.