<article>Taiwan&#8217;s <a href="https://www.dealstreetasia.com/?s=Public Service Pension Fund (PSPF)" target="_blank" rel="noopener">Public Service Pension Fund (PSPF)</a> has invited bids from fund managers for a five-year domestic equity mandate of up to NT$30 billion ($979 million).</article>

Taiwan&#8217;s <a href="https://www.dealstreetasia.com/?s=Public Service Pension Fund (PSPF)" target="_blank" rel="noopener">Public Service Pension Fund (PSPF)</a> has invited bids from fund managers for a five-year domestic equity mandate of up to NT$30 billion ($979 million).
The state pension fund invited bids from six managers, in a public notice dated November 29, to manage the domestic portfolio, each of which will have a maximum allocation of NT$5 billion. The fund managers can submit their pitches on or before December 17.
The fund managers are required to follow an absolute-return strategy and should meet an annual target return of 50 basis points above Taiwan’s Taiex Total Return Index, which has dropped 2 per cent since the beginning of the year, Asian Investor reported.
The annualised ex-post tracking error should not be more than 6 per cent, according to the invitation.
Moreover, to meet the eligibility criteria, the asset manager must have been in the business for more than three years. The asset manager should have managed more than 10 billion yuan in domestic mutual funds.
PSPF has not unveiled any new global mandate, whether domestic or overseas, since the announcement of the global total return fixed income mandate last October, because of the volatile market environment. This is the first one the state pension fund is preparing since then, and will be issued early next year.
The funds will be granted to investment managers in batches next year once the mandate is issued, Asian Investor report added.
The pension fund launched its first offshore mandate in 2013 in order to diversify its portfolio and now has 10 such mandates. In August, PSPF granted $1 billion to seven foreign asset managers for its two most recent global mandates.
While JP Morgan Asset Management, AllianceBernstein LP and Schroders plc were given $200 million each for the fund&#8217;s $600 million global multi-asset mandate, the pension fund awarded $100 million each to Amundi Asset Management, American Century Investments, Deutsche Asset Management and TCW Group, chosen earlier this year, to manage its $800-million global total return fixed income mandate.
The pension fund had total investable assets of NT$577.3 billion at the end of June 2018, as against NT$584.2 billion at the end of 2017.
Globally, pension funds are increasingly looking outside of traditional stocks and bonds, and shifting focus towards alternative investments.
In November, Taiwan’s Bureau of Labor Funds invited bids for a five-year, quasi-passive emerging markets equity mandate of $1.5 billion. In September, Japan’s ¥156 trillion Government Pension Investment Fund (GPIF) hired CBRE Global Investment Partners to manage a global core real estate fund-of-funds strategy. GPIF is reportedly targeting a 5 per cent allocation to real estate, infrastructure and equity, which would equate to ¥7.8 trillion in investments.

Taiwan's Public Service Pension Fund (PSPF) has invited bids from fund managers for a five-year domestic equity mandate of up to NT$30 billion ($979 million).

Taiwan's pension fund PSPF invites bids for $979m domestic equity mandate

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Taiwan's pension fund PSPF invites bids for $979m domestic equity mandate

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