Taiwan’s LPF reports year-on-year gains
30 November 2012
By Hui Ching-hoo
Taiwan’s largest retirement scheme, the Labor Pension Fund (LPF), has posted a return of 3% year-on-year, taking total AUM to NT$1.43 trillion (US$47.6 billion), as of the end of October.
The Labor Pension Fund Supervisory Committee (LPFSC) said in a statement on November 29 that the AUM of the pension fund’s Old Scheme stands at NT$576.5 billion. The NT$55.2 billion in assets overseen by external fund managers delivered a return of 2.56% YoY, while the NT$106.8 billion managed internally displayed growth of 3.1%.
Meanwhile, the AUM of the New Scheme weighed in at NT$859.1 billion. The NT$18.1 billion of assets outsourced to external managers recorded YoY growth of 4.31%, while the NT$6.28 billion in assets managed in-house displayed an increase of 1.67%.
The LPFSC stated that the committee will keep an eye on global economic trends, adjusting long-term and short-term investment strategies, and diversifying investment risks accordingly.
The committee added that it will reinforce performance measurement and risk controls on its outsourced mandates to help stabilise profitability.
The remarks follow accusations that ING SITC, one of the delegated domestic fund managers of the LPF and Labor Insurance Fund (LIF), was involved in illegal stock trading with delegated funds. The situation has been resolved with an out-of-court compensation agreement of NT$173 million, according to China Times.
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