LPF hands out $100 million for global infrastructure securities mandate

07 July 2014   Category: News, Asia, Global, Taiwan   By Hui Ching-hoo

Taiwan’s largest pension fund, the Labor Pension Fund (LPF), has confirmed that its defined benefit (DB) Old Scheme has awarded funding of US$100 million for its global infrastructure securities mandate.

The Bureau of Labor Funds (BLF), the supervisory body for the island’s labour pension funds, said in its monthly report that the two appointed managers, Cohen & Steers and Lazard, had been awarded a quota of $50 million each.

The bureau still has another quota of $100 million yet to be granted to the two managers.

Huang Chao-Hsi, director general of BLF, recently told Asia Asset Management that the BLF prefers to dish out funding for its mandates in phases, rather than on a one-off basis, in view of changing market conditions.

The LPF is one of the first pensions to target securitised infrastructure assets. The pension fund is looking to substantially raise the allocation to alternative assets of the defined contribution (DC) New Scheme and Old Scheme to 8% and 4% in 2015, respectively, from the current 4.2% and 0.9%.

Up to the end of May, the New Scheme and Old Scheme had an aggregate AUM of NT$1.57 trillion (US$52.5 billion), a decrease of 20% from NT$1.99 trillion in January this year.