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Taiwan's PSPF seeks bids for NT$20 billion domestic equity mandate

By Asia Asset Management  
Oct 22, 2019

Taiwan’s Public Service Pension Fund (PSPF), a mandatory defined-benefit scheme for civil servants, teachers and military personnel, is inviting bids for a NT$20 billion (US$654 million) domestic equity mandate.

PSPF is looking for four asset managers who will each be appointed for a period of five years and given a quota of NT$5 billion, the pension fund says in a statement on October 18.

Eligible applicants must have been established in Taiwan for at least three years and have at least NT$10 billion of total assets under management.

The scope of investment for the mandate includes local companies listed on the Taiwan Stock Exchange and the over-the-counter GreTai Securities market, as well as domestic stock exchange-traded funds.

The tender is open until November 4, and the fund says it will carry out due diligence and select the managers within 47 business days.

This is the PSPF’s second domestic equity mandate in less than a year following a NT$30 billion tender last November where it sought six managers.

The results of that tender have not been announced and spokespersons for PSPF could not be reached for comment.

The PSPF seldom releases tender results but according to a Taiwanese investment consultant who spoke to Asia Asset Management on condition of anonymity, that mandate has not been funded yet.

She says such a lag isn’t unusual for domestic pension funds, which typically wait for the “right” time to enter the market.

A month before opening the November tender, PSPF granted funding to five asset managers who were appointed in 2016 for a NT$10 billion domestic equity mandate.

The managers are HSBC Global Asset Management (Taiwan), Fuh Hwa Securities Investment Trust Co, Cathay Securities Investment Trust Co, Taishin Securities Investment Trust Co, and Prudential Financial Securities Investment Trust Enterprise.

The PSPF had NT$585.6 billion of total assets at the end of August 2019.