Labor Pension Fund sees return of 5.82 percent for first eight months


By Kathryn Chiu,The China Post

The Labor Pension Fund (LPF) secured an annualized return of 5.82 percent for the first eight months this year, boosting its total assets under management (AUM) to around NT$1.21 trillion. LPF (�Ҥu�h������) is Taiwan’s largest pension fund. According to the Commercial Times, the fund secured an annualized return of 5.82 percent for its defined contribution new scheme for the first eight months this year, boosting its total AUM to around NT$1.21 trillion. In August, the Bureau of Labor Funds (BLF, �Ұʰ����B�Χ�) dished out NT$21 billion in funding to its newly appointed domestic mandate external managers Cathay (�������H), FuHwa (�_�ا��H) and Uni-President (�Τ@���H); each received NT$7 billion. It reported an accumulated return of 3.86 percent as of Aug. 31 this year. The BLF said on its website that the new scheme reported a return of 9.45 percent for its outsourced mandates, and a return of 1.92 percent for assets overseen in-house. Meanwhile, the LPF’s defined benefit old scheme bolstered its AUM by 6.84 percent to NT$616.4 billion. Out of this, its outsourced mandates gained 8.52 percent and its internal investments 5.43 percent. As for the US$100 million funding the BLF granted in August for its old scheme global infrastructure securities mandates, outsourced managers AMP Capital and Principal Global Investors (PGI) secured accumulated returns of 0.06 percent. Crisis of Confidence

in New System Despite a better return on the basis of the defined contribution new scheme, the majority of LPF members lack confidence in the ��member choice platform�� reform that is scheduled to be introduced to the pension fund’s defined new scheme between 2015 and 2016.