The US$49 billion public-sector pension fund is planning to allocate more assets to third-party managers to boost its exposure to global stock markets.The Public Service Pension Fund may allocate about US$200 million each to a group of fund managers that can give it access to international markets, according to people familiar with the matter, who asked not to be named because the details are private. The total size of the allocation is not clear.The fund is still exploring what strategies to adopt, with some of the options being passive investing or index-enhanced funds, the people added. A spokesperson confirmed the fund is planning to give external asset managers new mandates to invest in global stocks, adding that it has not finalized total amounts and specific strategies.
People walk in a park in front of Taipei 101 on Thursday, July 16.
The fund, which had invested assets of NT$1.57 trillion (US$49 billion) as of the end of June, manages retirement assets for more than 600,000 public servants, education workers and military personnel. Its offshore assets managed through external managers were worth about US$11.5 billion in June.The move comes after another Taiwanese pension fund made fresh plans to invest overseas. The Bureau of Labor Funds, which had about NT$9.8 trillion of assets under management as of June, recently appointed asset managers to invest in infrastructure and global bonds.
