Taiwan’s LPF posts revenue of NT$27.3 billion for first half
30 July 2013
News, Global, Taiwan
By Asia Asset Management
Taiwan’s largest pension fund, the Labor Pension Fund (LPF), recorded revenues of NT$27.3 billion (US$91.1 million) for the first half of 2013, for an annualised return of 1.81%.
The LPF said on its website that the revenue advance brought the fund’s total AUM to NT$1.57 trillion as of the end of June. The LPF’s New Scheme, a defined contribution scheme, realised a return of 1.89% while the defined benefit Old Scheme reported a return of 4.96%.
The Old Scheme had total AUM of NT$595.3 billion. Of this, NT$217 billion was outsourced to external managers. In June, the Labor Pension Fund Supervisory Commission (LPFSC) granted US$100 million funding to its global minimum volatility equity indexing mandate, managed by BlackRock. The mandate still has US$400 million in funding yet to be granted.
The New Scheme’s US$500 million global minimum volatility equity indexing mandate, outsourced to BlackRock and State Street Global Advisors (SSgA) in April, suffered an average loss of 3.77%, compared to a loss of 3.67% for its benchmark index.
The LPF said the fund will keep rebalancing its asset allocations based on the change of the global economic condition, so as to stabilise its long-term return.
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