Taiwan’s PSPF puts up $600 million in mandates for tender

31 July 2014   Category: News, Asia, Global, Taiwan   By Hui Ching-hoo

Taiwan’s Public Service Pension Fund (PSPF) has initiated the process to tender US$600 million worth of global real estate equity and global infrastructure equity mandates to four foreign managers.

The PSPF said on its website that the pension manager will outsource a $300 million global real estate equity mandate to two asset managers, with each receiving a quota of $150 million. Meanwhile, it will delegate the management of the global infrastructure equity mandate to two foreign managers, with each awarded a quota of $150 million. The duration of the appointment is five years.   

The PSPF stipulated that the eligible applicants for the global real estate equity mandate must display a FTSE EPRA/NAREIT Global Index beating track record over the previous three years.

Likewise, to fulfill the criteria for the global infrastructure equity mandate, the qualified applicants have to show that their investment in infrastructure equities has outperformed the UBS Global 50/50 Infrastructure & Utilities Index.

The mandates are open for application until September 1.

The PSPF’s outsourcing comes shortly after its peer, the Labor Pension Fund (LPF), made its debut in global infrastructure securities earlier this year. Cohen & Steers and Lazard were appointed to oversee those mandates.  

PSPF is the third largest pension in Taiwan after the LPF’s defined benefit Old Scheme and defined contribution New Scheme, with total AUM of around $18 billion.