Taiwan’s LPF tenders new mandates of US$3.3 billion
03 September 2013
News, Asia, Global, Taiwan
By Hui Ching-hoo
Taiwan’s Labor Pension Fund Supervisory Committee (LPFSC) announced on Monday (September 2) that the Labor Pension Fund’s (LPF’s) defined contribution (DC) New Scheme has put up two new mandates, a global credit mandate and an enhanced global high dividend yield equity mandate, for tender.
The US$1.2 billion global credit mandate will be awarded to three external fund managers. Each will receive $400 million. The $1.5 billion enhanced global high dividend yield equity mandate will be outsourced to three external fund managers. Each manager will be granted $500 million.
The LPFSC stipulates that eligible applicants should have no less than $5 billion in total AUM with relevant investment experience for the past three years. The term of the contract will be five years, starting from the committee’s first transfer of the fund assets to the custodian. The deadline for applications is September 24.
Meanwhile, the LPF’s defined benefit (DB) Old Scheme has tendered an enhanced global high dividend yield equity mandate. The mandate will be granted to three external fund managers. Each will receive US$200 million. The term of the contract will be five years.
Separately, the LPFSC announces that the New Scheme displayed a return of 2.2% for the first seven months this year rising to NT$1.03 trillion (US$34.3 billion) as of the end of July. The Old Scheme reported a return of 1.8% to NT$594.9 billion during the period.
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