Taiwan’s LPF to tender new mandates in late September
29 August 2013
News, Asia, Global, Taiwan
By Hui Ching-hoo
Taiwan’s Labor Pension Fund Supervisory Commission (LPFSC) has scheduled to put US$2.7 billion worth of new Labor Pension Fund (LPF) mandates up for tender in late September.
A spokesperson from the LPFSC told Asia Asset Management that the new mandates will cover global high dividend yield and the Barclays global aggregate credit index. The US$600 million global high dividend yield allocation, for the defined benefit (DB) Old Scheme, will be awarded evenly between three external managers. Meanwhile, the US$900 million mandate for the defined contribution (DC) New Scheme will be outsourced evenly across three external managers.
Meanwhile, the New Scheme and the Old Scheme will put up $1.2 billion ($600 million each) for their Barclays global aggregate credit index mandates, which will be distributed amongst six outsourced managers (three for each scheme, with each manager receiving $200 million).
Separately, the commission revealed that the second stage is now complete in a four-stage plan to dish out a total of US$1 billion quotas to the global minimum volatility equity indexing mandates awarded to State Street Global Advisors (SSGA) and BlackRock by the LPF in April this year. The LPF has already granted $500 million, with each manager receiving US$250 million. Approval for the remaining funding is dependent on global market trends, the spokesperson notes.
Up to the end June, the LPF had total AUM of NT$1.57 trillion (US$52.3 billion).
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