Taiwan’s LPF puts US$2bn of mandates up for tender
27 February 2013
News, Asia, Taiwan
By Hui Ching-hoo
Taiwan’s Labor Pension Fund (LPF) announced on Tuesday (February 26) that it has put NT$60 billion (US$2 billion) worth of domestic market (absolute return) mandates, stemming from the Old and New schemes, up for tender.
The LPF will tender the $30 billion mandate from the New scheme to six domestic asset managers. Each will receive $5 billion. The $30 billion mandate from the Old scheme will also be granted to six local fund managers, with each manager also being awarded $5 billion.
The Labor Pension Fund Supervisory Committee (LPFSC) stipulates that the outsourced domestic fund manager should achieve an investment target of at least 9% per annum. The duration of the appointment is four years. Applicants are required to submit their applications between February 26 and March 18.The committee will carry out first and second phase due diligence between March 19 and April 22.
The recruitment came after LPF’s Old scheme handed out US$1 billion in domestic market (absolute return) mandates to six local managers: Cathay, HSBC Global Asset Management (Taiwan), President, ING, Capital, and Prudential last April. Each received US$160 million. The managers had recorded an accumulated loss of 0.13% as of the end of October 2012.
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