Taiwan’s PSPF posts 11.14% return through May
24 June 2013
News, Global, Taiwan
By Hui Ching-hoo
The Public Service Pension Fund (PSPF) in Taiwan realised revenue of NT$23.8 billion (US$790 million) in May, an increase of $4.4 billion or 22.6% month-on-month from the $19.4 billion in the previous month. This translates into an annualised return of 11.14%.
The PSPF said on its website that the result was mainly driven by the rally across the Taiwan Stock Exchange Weighted Index and MSCI Global Equities Indices.
It notes that the fund continues to access specific asset classes and assets with high-risk exposures via outsourced managers. On June 4, it dished out US$600 million in funding to global emerging market debt mandates overseen by Ashmore Investment Management, BlueBay Asset Management, and Stone Harbor Investment Partners. Each received $200 million.
Meanwhile, the fund also divided up a NT$25 billion quota among five domestic mandate managers; President, Schroders, Prudential, Allianz Global Investors, and HSBC Global Asset Management (Taiwan). Each received $5 billion.
Since Taiwan’s legislative body, the Legislative Yuan, previously lowered its economic forecast to 2.4% from 3.59% for this year, the PSPF will reallocate its portfolio and diversify its mandates accordingly in order to achieve its investment objectives.
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