PSPF cuts back on equities and ETFs
03 December 2012
News, Asia, Taiwan
By Hui Ching-hoo
Taiwan’s Public Service Pension Fund (PSPF) has capped its allocation to domestic equities and ETFs for next year to 31% of its total assets, or NT$150 billion (US$5 billion), according to a report from the Commercial Times on December 2.
In addition, in light of the illegal stock trading scandal activities associated with outsourced fund managers at PSPF, Labor Pension Fund (LPF) and Labor Insurance Fund earlier this year, the PSPF will reduce the outsourcing of its Taiwanese equity and ETF mandates to 15% in 2013, down from 17% this year. The domestic equity and ETF mandates overseen in-house will remain at 15%.
PSPF has also revised its investment target for 2013 to 3.78% from 3.7% this year because of an expected improvement in market conditions. The pension is to favour fixed income assets and is set to increase its weighting in domestic bonds and offshore bonds to 8.7% and 7% from 7.7% and 6% this year, respectively.
Up to the end of September, PSPF realised an annualised return of 2.83% year-on-year.
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