Taiwan’s PSPF appoints three external managers for global mandates

24 March 2014   Category: News, Asia, Global, Taiwan   By Hui Ching-hoo

BlackRock, Allianz, and UBS have been appointed by Taiwan’s Public Service Pension Fund (PSPF) to manage a total of US$1 billion worth of mandates, divided between global minimum volatility indexed equity (ex-Taiwan) and global high dividend yield enhanced equity (ex-Taiwan).

The PSPF split the global minimum volatility mandate between BlackRock and UBS – each will receive $250 million. BlackRock and Allianz will share the global high dividend mandate – both to be awarded $250 million.   

A spokesperson from the PSPF tells Asia Asset Management that the pension fund committee took almost a month to finalise its decision, following the applicants presenting their cases at a beauty parade in late February. 

The PSPF is still negotiating management fees with the appointed managers. The granting of the funding has yet to be scheduled, and will be dependent on global economic conditions.

The fund recorded revenues of NT$2.28 billion (US$76 million) in January this year, which translates to annualised returns of 5.2%.