Four Taiwanese state-run firms to merge trusts into $15B asset manager

What's the deal? Four state-owned financial holding companies in Taiwan — First Financial HoldingDealroom has a profile for this one. Try Dealroom →, Mega Financial HoldingDealroom has a profile for this one. Try Dealroom →, Taiwan Cooperative Financial Holding, and Hua Nan Financial HoldingsDealroom has a profile for this one. Try Dealroom → — have approved a plan to merge their investment trust subsidiaries into a single asset manager. First Securities Investment TrustDealroom has a profile for this one. Try Dealroom → will be the surviving entity, with combined assets under management of about US$14.5B.

How it works: The deal, structured as a share swap, will see First Securities Investment TrustDealroom has a profile for this one. Try Dealroom → issue about 59,300,000 new common shares and absorb the trust arms of the other three groups. First Financial will hold 50.3%, Mega 30.4%, Taiwan Cooperative 9.8%, and Hua Nan 9.5%.

The merger, which requires regulatory approval, is planned for January 1, 2028. All of the roughly 370 employees will have the option to stay on.

What's the endgame? Executives said pooling resources, technology, and distribution networks should cut operating costs and broaden product offerings. The combined firm's publicly offered fund assets would rank about 12th among Taiwan's investment trusts, and it aims to break into the top 10.

First Securities Investment Trust president Richard Kao said the firm plans to grow publicly offered fund assets by 15% annually and discretionary mandates by 10%, developing products for retirement planning, sustainable investment, overseas allocation, and wealthy clients.

Why now? The merger follows the government's push to establish Taiwan as an Asian asset management hub. "A broader range of investment products should help improve profitability and shareholder returns," First Financial Holding president Frank Fang said.

What changes: The new company will keep the First Securities Investment Trust name, with First Financial controlling top management appointments. It will have seven directors and two supervisors, and will assume responsibility for existing customers, whose rights remain protected under applicable regulations.

The signal: The tie-up points to consolidation among Taiwan's state-backed financial groups as they chase scale to compete regionally — betting that bigger, more efficient managers are better placed to capture the island's ambition of becoming an asset management hub.

Read more: news.ltn.com.tw

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