Taiwan’s LPF to dabble in listed real assets

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

Taiwan’s Labor Pension Fund (LPF) defined benefit (DB) old scheme is poised to appoint four external asset managers to undertake its real estate investment trust (REIT) and listed infrastructure investments, making it one of the first, if not the first, amongst its Asian pension peers to dabble in listed real assets.

Asia Asset Management understands that AMP Capital and Principal Asset Management will be appointed to oversee the REIT mandate with quotas of US$100 million each. Meanwhile, Cohen & Steers and Lazard Asset Management will be invited to manage the infrastructure mandate. Each of them will be granted a quota of $100 million.

A spokesperson from the Bureau of Labor Funds (BLF) told AAM that the LPF would enter into an agreement with the four managers in the next few weeks.

LPF’s old scheme and defined contribution (DC) new scheme had total AUM of NT$2.39 trillion (US$79.5 billion) as of the end of February. The pension fund is looking to raise its exposure to alternative investment tools given the fund only has a marginal 5% weighting to the asset classes at the moment.