Taiwan’s LPF puts two new mandates out to tender
04 June 2013
News, Asia, Taiwan
By Hui Ching-hoo
Taiwan’s largest pension fund, the Labor Pension Fund (LPF), is poised to put out two new mandates for tender in the second half of the year – for global high dividend yield and for the Barclays global aggregate credit index.
An LPF spokesperson tells Asia Asset Management that the global high dividend yield mandate for the New Scheme amounts to US$900 million, and for the Old Scheme, $600 million. Each scheme will outsource to three external managers. And each manager for the New Scheme will be awarded $300 million, while each Old Scheme manager will be given US$200 million.
The New Scheme and the Old Scheme will each put up $600 million for their Barclays global aggregate credit index mandates, which will be distributed amongst three outsourced managers for each scheme; each mandated manager will receive $200 million.
Separately, the spokesperson revealed the New Scheme had granted $250 million worth of funding for its global minimum volatility equity indexing mandate to BlackRock and State Street Global Advisors (SSgA) in April. Each received $125 million. The two managers are still waiting for an additional $750 million worth of funding to be granted.
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