Taiwan sees first domestic fund surpass NT$400 per unit

台灣首檔台股基金單位規模突破400元

TAIPEI (Taiwan News) — Taiwan saw its first domestic fund surpass a net asset value per unit of NT$400 (US$13) on Monday, as Uni-President Asset Management Co.’s All Weather Fund hit the milestone.

NAV per unit shows the market value of a single unit of a mutual fund or exchange-traded fund, which investors buy and sell. The All Weather Fund reached NT$402.57 per unit on Tuesday.

Mutual funds operate by pooling money from multiple investors and entrusting it to professional fund managers, who invest in various financial instruments such as stocks and bonds to generate returns. When the value of a fund’s investments rises, the total fund value increases, which pushes the NAV and the NAV per unit higher, according to CNA and Capital ITC and Anue.

The All Weather Fund focuses heavily on stocks, with 93.77% of its holdings in equities. Its breakthrough comes amid record highs in Taiwan’s stock market.

Launched in 1994 with an offering price of NT$10 per unit, the fund first crossed NT$300 last year. It has now surpassed NT$400 in just one year.

As of the end of August, the fund held NT$8.14 billion in total assets. Its top five investments are BizLink Holding, Accton Technology, TSMC, Elite Material, and Jentech Precision Industrial.

Looking at Monday’s per-unit NAV rankings for Taiwan’s funds, the second-place fund was UPAMC Ben Teng Fund, with an NAV per unit of NT$338.84. Third to fifth place went to Eastspring Investments High-Tech Fund at NT$297.5, UPAMC Optima Fund at NT$286.34, and Allianz Global Investors Taiwan Technology Fund at NT$285.46, respectively.

Fund companies said the milestone is a positive sign for long-term investors aiming for asset growth. They cautioned, however, that a fund’s NAV only reflects its current value and does not indicate future performance.

Investors are encouraged to also consider factors such as returns, fund age, and fund manager track record when evaluating a fund.