Tsai Ing-wen, who was re-elected to a second presidential term last weekend, should take the bull by the horns and further improve the island's pension system over the next four years.
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.
The proposed lengthening of its external mandates will make it easier to invest in private equity. The Taiwan pension fund isn't raring to take advantage though.
The domestic portfolio will be split among six managers and issued early next year now that valuations are below their historical averages. Timings will be dictated by global conditions.
The $19 billion Public Service Pension Fund has invited pitches for its first global total-return fixed-income mandates. Four managers will each get $200 million.
The Taiwan pension fund is not planning to use currency derivatives to counter US dollar volatility, despite some of its board advisers suggesting it should do so.