The Bureau of Labor Funds (BLF) announced today that it will launch a public tender to select external asset managers for the “Global Climate Transition Passive Infrastructure Securities” overseas investment mandates under the Labor Pension Fund, the Labor Insurance Fund, and the National Pension Insurance Fund for fiscal year 2026. BLF plans to select five qualified external managers. Each selected manager will be entrusted with USD 400 million from the Labor Pension Fund, USD 100 million from the Labor Insurance Fund, and USD 100 million from the National Pension Insurance Fund, representing a total mandate size of USD 3 billion. The mandate term will be five years.

This mandate will invest in listed infrastructure companies worldwide and using the FTSE Global Core Infrastructure ex China TPI Climate Transition Index as the benchmark, targeting companies with forward-looking climate transition management capabilities. The adoption of a passive investment approach enables diversified exposure across index constituents, covering a broader market universe and participating in the global infrastructure market at relatively lower cost. This is expected to enhance overall portfolio stability and diversification, thereby supporting long-term stable returns.

With the rapid development of artificial intelligence (AI), cloud computing, and the digital economy, investment opportunities in related infrastructure have been expanding. Such assets typically feature stable cash flows, essential demand, and resilience to economic cycles, which help generate long-term returns while enhancing portfolio defensiveness. In addition, under the global energy transition trend, power and related infrastructure are gradually shifting toward low-carbon development. This mandate aligns with international trends by focusing on climate transition infrastructure, combining stable income characteristics with structural growth in electricity demand. It aims to strengthen the balance of alternative investments within the overall portfolio, enhance diversification, and simultaneously support corporate transition while capturing investment growth opportunities.

The BLF stated that both the Labor Funds and the National Pension Insurance Fund have consistently adhered to a long-term and prudent investment approach. In line with fund growth and annual asset allocation plans, investments are allocated across domestic and international equities, bonds, and alternative assets. This mandate represents a consistent capital allocation under the annual investment plan. The submission deadline is April 28, 2026, and qualified domestic and international institutions are encouraged to participate. The BLF also expects appointed managers to continue deepening their engagement in the Taiwan market while introducing international asset management expertise and resources.

The Labor Funds and the National Pension Insurance Fund aim to safeguard labor retirement and economic security of the public. The BLF will continue to uphold prudent investment principles, manage assets professionally, and enhance long-term investment performance to ensure the fund’s sustainability and sound operation.