Asia Asst Management
Date: 29 April 2015
By: Hui Ching-hoo

Taiwan’s largest pension, the Labor Pension Fund (LPF), has allotted a fresh batch of quotas worth NT$30 billion (US$1 billion) to six local managers.

The pension governing body, the Bureau of Labor Funds (BLF), said in its monthly report that the bureau doled out NT$15 billion in quotas in domestic mandates under the LPF’s defined benefit Old Scheme in March. The appointed managers included: Cathay, SinoPac, Fuh Hwa, HSBC Global Asset Management (Taiwan), and Allianz Global Investors Taiwan.

Meanwhile, the BLF also granted another NT$15 billion in quota to managers for the domestic mandate under the fund’s defined contribution New Scheme. Each manager was awarded a quota of NT$2.5 billion.

Up to the end of March, the LPF had total AUM of NT$1.34 trillion. Of this, NT$1.03 billion worth of assets were managed in-house, equivalent to year-to-date growth of 0.18%. The pension’s outsourced assets amounted to around NT$11.7 trillion, translating into year-to-date growth of 1.58%.

The pension’s combined year-to-date growth rate was 0.96%, falling short of its guaranteed return of a two-year fixed deposit rate at 1.39%.