The Bureau of Labor Funds (BLF) completed the selection process for external managers on June 26, 2026, for the “Global Passive Fixed Income” overseas investment mandates under the Labor Pension Fund and the National Pension Insurance Fund for fiscal year 2026.

This selection process attracted active participation from leading international asset management companies. Following a rigorous review and multi-stage evaluation process, the BLF selected four external managers qualified to enter into mandate agreements: DWS International GmbH, Goldman Sachs Asset Management, L.P., State Street Global Advisors Singapore Limited and UBS Asset Management (Singapore) Ltd (listed in alphabetical order by the first letter of each company’s English name). Each selected manager will be entrusted with USD 300 million from the Labor Pension Fund and USD 100 million from the National Pension Insurance Fund, representing a total mandate size of USD 1.6 billion. The mandate term will be five years.

The mandate will invest in the global bond market, with the Bloomberg Global Aggregate Index ex CNY as the benchmark. By employing a passive approach, the BLF aims to participate in the global bond market at relatively lower cost, while enhancing portfolio stability and diversification, thereby supporting the long-term and stable returns of the funds.

The BLF noted that the management of both the Labor Funds and the National Pension Insurance Fund has consistently adhered to the principle of seeking long-term and stable returns. In planning investment mandates, the BLF takes into account each fund’s asset growth, cash flows, current asset allocation and long-term trends, together with domestic and international financial market and economic conditions, while maintaining diversified investments across multiple currencies and asset classes. When financial markets experience volatility, such diversification helps spread the risk through changes in the relative values of different assets and currencies, thereby reducing volatility in fund assets and stabilizing overall fund returns.

This mandate represents a consistent deployment of funds in accordance with the annual asset allocation plan. Going forward, the BLF will proceed with the signing of investment mandate agreements and account-opening procedures with the four selected managers, while continuing to closely monitor domestic and international economic and financial developments and arrange funding for this overseas investment mandate as appropriate.