Taiwan’s LIF eases up on delivering new mandates
28 January 2013
By Hui Ching-hoo
Taiwan’s Labor Insurance Fund (LIF) is no hurry to put up new mandates in 2013 after the pension fund completed the allocation of its global emerging market debt mandate in the fourth quarter last year.
A Bureau of Labor Insurance spokesperson tells Asia Asset Management that LIF granted the final portion of the US$450 million funding to its global EM debts managers Stone Harbor, BlueBay, and Templeton Asset Management between October and December last year.
“We’ll take some time to review our entire asset allocation process and may use a ‘top up’ approach, allocating money to existing accounts first,” the spokesperson said. “Some of our existing global managers, including global equity and fixed income, are performing very well. We are also continuing to study new mandate types, and may design a new one in the second half of this year.”
LIF’s annual profit hit a three-year high of NT$31.3 billion (US$1.04 billion) in 2012, translating into year-on-year growth of 3.33%. The fund’s investment in overseas equities and fixed income realised a profit of NT$15.7 billion, representing growth of 6.25%. Profit from domestic equities came in at NT$11.3 billion, an increase of 11.92%.
The pension fund currently allocates about 40% of its assets to overseas markets.
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