The pension fund intends to split the domestic portfolio between four asset managers. It explained to AsianInvestor why it is employing an absolute-return strategy to do so.
Last week the Swiss firm halted dealing in its absolute return bond funds after suspending the products’ lead manager, in a move that has sparked concern about such strategies.
The $125 billion state fund is seeking managers for 15 mandates for its first overseas absolute-return equity portfolios, as it seeks to counter expected volatility in global markets.
The $126 billion state pension fund will hand out the new overseas-focused mandate in mid-November, amid rising volatility in global markets.
Taiwan's biggest insurance firm will cut its reliance on benchmark-driven mandates and focus on absolute-return strategies. It is seeking fund managers for mandates to this end.
The Bureau of Labor Funds has invited bids for $2.4 billion in domestic mandates, while the Public Service Pension Fund has handed $600 million to three foreign asset managers.