Taiwan’s Labor Pension Fund, Taipei, could issue requests for proposals as early as next month for US$1.5 billion in global high-dividend-yield enhanced index equity mandates and $1.2 billion in active Barclays Capital Global Aggregate credit mandates, sources with knowledge of the fund confirmed. (All figures are in U.S. dollars.)
For the enhanced index equity allocations, the Labor Pension Fund’s new defined contribution plan, with $31.9 billion in assets as of April 30, will issue RFPs for three portfolios of $300 million each, while the fund’s old defined benefit plan, with $19.9 billion in portfolio assets, will issue RFPs for three accounts of $200 million each, the sources said.
For the credit portfolios, meanwhile, the Labor Pension Fund plans each will issue RFPs for three active managers of $200 million each.
The Labor Pension Fund will look to select managers for all the accounts by October, said one source.
Meanwhile, the Labor Pension Fund’s new DC scheme made its first allocations in April to global minimum volatility equity index strategies, giving $125 million each to BlackRock and State Street Global Advisors. The scheme hopes to allocate an additional $350 million apiece to both managers in the next two to three months.
Funding will come from new infusions to the Labor Pension Funds, sources said.