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Taiwan’s BLF seeks managers for US$3.94 billion global mandates

BLF story
By Hui Ching-hoo   
October 28, 2020

Taiwan’s Bureau of Labor Funds (BLF) is inviting foreign fund managers to bid on two global mandates totalling US$3.94 billion.

The pension supervisor plans to hire four managers for a $1.64 billion global infrastructure securities mandate and five managers for a $2.3 billion global multi-asset mandate, according to its request for proposal on October 26.

Managers appointed for the infrastructure securities mandate will each oversee $410 million of investments, split into $350 million for the Labor Pension Fund (LPF), Taiwan’s largest labour retirement plan, and $60 million for the Labor Retirement Fund, the largest defined-benefit retirement scheme on the island.

Managers chosen for the global multi-asset mandate will each oversee $460 million: $400 million for the LPF, and $60 million for the National Pension Insurance Fund, which covers old age and disability protection.

All appointments are for five years.

Applicants for both mandates must have at least $5 billion of total assets globally as of September 30, 2020, and a minimum least three-year track record in the related strategies.

Applications are open until November 30.

The BLF’s tender schedule appears to be back on track after being derailed by the coronavirus pandemic earlier this year. Thus far, it has called bids for three mandates, including the two new ones.

Liu Li-ju, deputy director general of the BLF, said in an interview with Asia Asset Management in July that she aims to kick off outsourcing for 2021 mandates by the end of this December.

She said manager selection for the BLF’s first tender of 2020, a $2.3 billion environmental, social and governance corporate bond mandate which was opened in the first quarter, was postponed for several months because of the pandemic. The BLF appointed five US and European managers for the mandate last week.

The BLF, which supervises seven pension funds, had around NT$4.45 trillion ($155.7 billion) of total assets as of end-August 2020.