Tag : taiwan pension fund

As the Public Service Pension Fund (PSPF) starts designing its defined contribution scheme, all eyes are on whether more reforms will flow through Taiwan’s public pension fund industry, especially after the new administration takes office.

Taiwan's largest pension fund is seeking bids for the first domestic equity mandate of the year worth over $2 billion, with a clear emphasis on sustainability in potential investments.

Taiwan's Bureau of Labor Funds has implemented staff rotations, built an ESG team and tightened contractual terms as part of an overhaul of internal operations under a new leadership.

In an exclusive interview, the head of Taiwan’s Bureau of Labor Funds revealed how the pension turned more aggressive in bond investments to adapt its $201 billion portfolio to higher rates.

Taiwan’s Public Service Pension Fund will be overhauled with new members to be enrolled in a defined-contribution scheme rather than the current defined-benefit. Other restructuring measures have also been adopted.

The Bureau of Labor Funds should be more conservative in issuing mandates in the first half of 2023, as rate hikes continue to pressure the global market, market advisors said.

Taiwan’s largest pension manager opened a bid for its first overseas ESG mandate back in late 2016, in order to diversify investment risk and create stable long-term returns. The strategy is now being tested during the market downturn.

Though its first global ESG equity mandate has recorded an 11% loss since 2021, the pension fund is sticking to its long-term ESG goal.