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Taiwan Fund Managers Quit Amid Record Stock Gains Due to Pay and Trading Restrictions
Finance · Investment Managers · economic_daily · 2026-10-16
Despite a 62% surge in Taiwan stocks, fund managers are leaving the industry due to strict personal trading rules and lower compensation compared to private firms.
What Happened
Industry Landscape: Taiwan's stock market has outperformed global peers with a 62% gain this year, yet this success has triggered an exodus of fund managers. Data indicates that turnover is high, with less than half of managers at major equity funds staying in their roles for more than three years.
Core Motivations: Strict internal trading regulations prevent managers from investing in the stocks they select for their funds, leading to frustration when those picks perform exceptionally well. Furthermore, private investment firms offer significantly higher compensation and greater personal trading freedom, making them more attractive than traditional asset management firms.
Regulatory Hurdles: Industry self-regulation mandates a seven-day blackout period for personal trading, and some firms impose strict monitoring, including the confiscation of mobile devices during trading hours. While regulators argue these measures are necessary to prevent conflicts of interest, they have created a restrictive environment that drives top talent away.
Future Outlook: The Financial Supervisory Commission is currently reviewing these rules to balance investor protection with market competitiveness. While the total number of registered investment professionals continues to grow, the industry faces a critical challenge in retaining experienced talent in an increasingly competitive financial landscape.