Taiwan’s LIF delivers returns of 3.14% in January to May
27 June 2013
News, Global, Taiwan
By Hui Ching-hoo
The external mandates of Taiwan’s Labor Insurance Fund (LIF) delivered mixed results for the first five months of the year despite the pension fund reporting revenue gains. The Bureau of Labor Insurance (BLI) said on its website on Monday (June 24) that the total AUM of the LIF was up 3.14% to NT$484.5 billion (US$16.09 billion) as of the end of May.
The LIF outsourced 31.24% assets to external managers. Among which, the global emerging market equity mandate LIF awarded to Vontobel last October recorded a return of 1.97% to US$331.2 million in the first five months this year, against the 1.94% of its benchmark FTSE AW Emerging Markets ex-Taiwan Index.
Meanwhile, the passive global fixed income mandates overseen by State Street Global Advisors (SSGA) and Vanguard suffered losses of 5.48% and 5.45% to US$273 million and US$266.3 million, respectively, falling less than the benchmark Barclays Capital Global Treasury Index.
One the domestic side, the NT$4 billion mandate the LIF outsourced to President Securities Investment Trust last March had delivered accumulated returns of 8.29% to NT$4.32 billion as of the end of May.
A complete labor insurance system was introduced in Taiwan in 2009. As part of that, the LIF is an insurance fund that provides for monthly pensions, disability claims, and death benefits.
More News >