Taiwan’s LPF puts NT$42 billion worth of mandates out to tender

28 February 2014   Category: News, Asia, Global, Taiwan   By Hui Ching-hoo

Taiwan’s Labor Pension Fund (LPF) defined benefit (DB) new scheme has put up NT$42 billion (US$140 million) worth of domestic mandates (absolute return) for tender, of which the funding will be allocated between six domestic external asset managers.

The Bureau of Labor Funds (BLF) said on its website that each of the appointed fund managers would receive a quota of NT$700 million. The duration of the appointment is four years.

The bureau added that the mandates will be invested in a wide array of assets including Taiwanese equities, corporate debt, public debt and bank debentures. The investment objective is to outperform the four-year average of the Taiwan stock market by 200 basis points.

The BLF stipulates that the eligible applicants should have total AUM of no less than NT$10 billion and have at least three-year’s experience of managing domestic equity funds or balanced funds. Their average monthly fund valuation should be more than NT$1 billion over the previous three years.

The mandate is open for applications between February 27 and March 13. The pension fund will then perform its process of deliberation between March 14 and April 6.