Taiwan’s Public Service Pension Fund (PSPF) has hired US asset manager BlackRock and Switzerland’s UBS Asset Management for a US$400 million global quality environmental, social and governance indexed equity mandate.
The amount will be equally split between the two asset managers, who have been appointed for a five-year term, PSPF says in a statement on July 29. Taiwan’s First Commercial Bank is the custodian.
The mandate, which was opened for tender in April, is benchmarked against the MSCI ACWI Quality ESG Target Index. It will focus on stocks, exchange-traded funds and derivatives.
“The mandate is the fund’s first standalone ESG strategy. It will help bolster the fund’s factor-based sustainability investment capability,” a PSPF spokesperson tells Asia Asset Management.
She says the pension fund doesn’t have any immediate plans to outsource more ESG assets.
Figures from Taiwan’s Financial Supervisory Commission show that assets of ESG-themed funds jumped four-fold year-on-year to NT$89.5 billion ($3.13 billion) in 2020.
PSPF, a mandatory defined-benefit scheme for civil servants, teachers and military personnel, had NT$721.6 billion investable assets as of June 2021.