Taiwan’s LPF appoints six managers for global high dividend yield and global credit mandates

23 January 2014   Category: News, Asia, Taiwan   By Hui Ching-hoo

Taiwan’s Labor Pension Fund (LPF) has awarded Vontobel, Wellington, and MFS global high dividend yield mandates while Bluebay, Loomis and BlackRock have secured global credit mandates.

The defined contribution (DC) LPF New Scheme will allot US$400 million each to Vontobel, Wellington, and MFS. Bluebay, Loomis, and BlackRock will each receive $500 million from the LPF New Scheme as well as $200 million each from the defined benefit (DB) Old Scheme.

The LPF put up the mandates out to tender last August. A spokesperson from the Labor Pension Fund Supervisory Committee (LPFSC) tells Asia Asset Management that the committee appointed the managers in November 2013, adding: “The committee has yet to come up with a timeframe in which to grant the funding. It is dependent on global market conditions, so it may take up to six months for the committee to make the allotments.”

They also note: “The fund will increase its exposure to alternative assets going forward. The committee is in the course of searching for external managers for REIT and infrastructure mandates.”

LPFSC Vice Chairperson Li-Ju Liu previously revealed the LPF secured revenue of NT$79.2 billion ($2.63 billion) for the first 11 months of 2013. The pension fund has recovered from the losses it incurred during the global financial crisis due to its prudent investment approach – the fund has gathered accumulated revenue of NT$169.8 billion in the last five years.