Cathay Life’s bond ETF assets surge as new rules loom
With new rules coming into force soon that will likely curb the Taiwan insurance industry's appetite for bond ETFs, Cathay has pressed ahead before it is affected.
Cathay Life, the largest lifer in Taiwan, has been raising its exposure to bond exchange-traded funds (ETFs) ahead of higher risk charges on such instruments.
It is investing about 5% of its investable assets in bond ETFs, a spokesman told AsianInvestor. The allocation is a fivefold increase on the start of the year when the insurer said fixed-income ETFs accounted for 1% of its investable assets.
The spokesman said the underlying assets were high-quality bonds familiar to the …
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