Taiwan’s LPF and PSPF to complete funding of new mandates
18 May 2012
News, Asia, Taiwan
Taiwan’s Labor Pension Fund (LPF) and the Public Service Pension Fund (PSPF) are expected to complete the funding of their recently granted domestic mandates by the end of June, according to the Economic Daily News.
The LPF’s new and old schemes issued a total of NT$30 billion (US$1 billion) worth of domestic equity (relative return) mandates, and the PSPF NT$24 billion.
The LPF’s old scheme split US$333 million between two domestic fund managers, Yuanta and HSBC Global Asset Management (Taiwan), in March this year. The new scheme dished out a total of US$666 million to Yuanta, HSBC Global Asset Management (Taiwan), Fubon and Cathay. Each received US$166.5 million.
As of the end of April, Taiwan’s pension funds had granted a total of NT$512.2 billion worth of domestic equities mandates. Only half of the funding has been handed over to the fund managers as a result of unfavourable economic conditions in Europe and uncertainties surrounding the proposed implementation of capital gains tax, according to the Securities Investment Trust & Consulting Association (SITCA)
Market pundits expect Taiwan equities to bounce back in the third quarter of the year due to capital injections from the island state’s pension funds.
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