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Taiwan’s PSPF hires HSBC, Nomura and two local firms for NT$12 billion mandate

PSPF
By Hui Ching-hoo   
May 25, 2023

Taiwan’s Public Service Pension Fund (PSPF) has outsourced its NT$12 billion (US$391 million) domestic equity mandate to two foreign and two local asset managers.

The foreign firms are the UK’s HSBC Global Asset Management and Japan’s Nomura Asset Management. The local firms are Fubon Asset Management Co and Cathay Securities Investment Trust Co.

PSPF made the announcement in a statement on May 21, 11 weeks after opening a public tender. HSBC and Nomura placed their bids through their Taiwan units.

“We aim to achieve the objectives of risk diversification, professional management, and yield enhancement through the outsourcing,” the pension fund says.

The fund’s last tender was in March 2022, for a $1 billion global environmental, social and governance equity mandate. It was awarded to Allianz Global Investors, Schroder Investment Management, State Street Global Advisors, and J.P. Morgan Asset Management in July.

The PSPF is a mandatory defined-benefit retirement scheme for civil servants, teachers and military personnel, with NT$732.8 billion of assets under management as of March 2023.