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Selection of Investment Manager for 2021 First Overseas Discretionary Investment of Labor Pension Fund, Labor Retirement Fund and National Pension Insurance Fund by Bureau of Labor Funds

  • Publish Date:2020-10-26
  • Type:NEWS

Announcement by the Bureau of Labor Funds

Date of Dispatching: October 26, 2020

Subject: Selection of Investment Manager for 2021 First Overseas Discretionary Investment of Labor Pension Fund, Labor Retirement Fund and National Pension Insurance Fund by Bureau of Labor Funds

Provisions: 

I. Labor Pension Fund: Labor Pension Act, Regulations of Labor Pension Act on the Labor Pension Fund Management/Utilization and Profit/ Loss Allocation, Mandated Management Guidelines for the Labor Funds and Directions For Derivatives Transaction For the Labor Funds.

II. Labor Retirement Fund: Article 56 of Labor Standards Act, Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund, Mandated Management Guidelines for the Labor Funds and Directions For Derivatives Transaction For the Labor Funds.

III. National Pension Insurance Fund: Article 3 of the Regulations for Management, Utilization and Supervision of the National Pension Insurance Fund, Overseas Investment Outsourcing Guidelines for National Pension Insurance Fund and Directions For Derivatives Transaction For National Pension Insurance Fund.

Announcement:

I. Mandate Types, Amount of Investment and Number of Selected Manager(s):

1. Global Infrastructure Securities: Total amount of investment is 1.64 billion US dollars. An estimated amount of investment of 1.4 billion US dollars with four selected managers for Labor Pension Fund, with 350 million US dollars to be mandated to the management of each selected manager respectively. An estimated amount of investment of 240 million US dollars with four selected managers for Labor Retirement Fund, with 60 million US dollars to be mandated to the management of each selected manager respectively.

2. Global Multi-Asset: Total amount of investment is 2.3 billion US dollars. An estimated amount of investment of 2 billion US dollars with five selected managers for Labor Pension Fund, with 400 million US dollars to be mandated to the management of each selected manager respectively. An estimated amount of investment of 300 million US dollars with five selected managers for National Pension Insurance Fund, with 60 million US dollars to be mandated to the management of each selected manager respectively.

II. Term of Investment Management: the term of investment management shall be five years, starting from the date the Bureau first transfers the Fund Assets to the custodian.

III. Qualifications of Applicant Manager

1. The applicant manager must be established for more than three years by September 30, 2020.

2. The applicant is registered in accordance with the laws of R.O.C. or foreign laws.

3. The market value of the applicant’s global assets under management (including securities investment consulting business with the power to decide how to allocate clients’ assets) shall be no less than 5 billion US dollars or its equivalent calculated in other currencies, as of September 30, 2020. The calculation of the market value of global assets under management should be limited to the aggregate assets under management of the applicant and its affiliated asset management companies within the same enterprise group.

4. The track record of the mandate proposed product should be no less than 3 years and please provide the investment performance for the past three years (the three years ended on September 30, 2020) as follow:

(1) With respect to the Global Infrastructure Securities mandate type, the global infrastructure securities composite under the applicant manager’s management shall have the following characteristics (benchmarked to either one of the following benchmark indices):

(A) Where FTSE Global Core Infrastructure 50/50 Index, FTSE Developed Core Infrastructure 50/50 Index, Dow Jones Brookfield Global Infrastructure Index, S&P Global Infrastructure Index, MSCI ACWI Core Infrastructure Index, or MSCI World Core Infrastructure Index is adopted, the cumulative gross rate of return calculated in US dollars or other currencies for the past three years.

(B) Where the Global Infrastructure benchmark index provided by other index providers is adopted, the cumulative gross rate of return calculated in US dollars or other currencies for the past three years.

(C) Where T-Bill Index, LIBOR Index, other index based on deposit rate, index with reference to inflation rate, or specified rate of return is adopted, the cumulative gross rate of return calculated in US dollars or other currencies for the past three years.

(2) With respect to the Global Multi-Asset mandate type, the proposed product shall be a multi-asset strategy and shall not use the simulated performance data. The global multi-asset composite under the applicant’s management shall have the following characteristics (benchmarked to either one of the following benchmark indices):

(A) Where T-Bill Index, LIBOR Index, other index based on deposit rate, index with reference to inflation rate, or specified rate of return is adopted, the cumulative gross rate of return calculated in US dollars or other currencies for the past three years.

(B) Where the composite index which is composed of the equity benchmark index (the benchmark index provided by index providers, e.g. MSCI, FTSE, S&P, Dow Jones, etc.) and the bond benchmark index (the benchmark index provided by index providers, e.g. Bloomberg Barclays, Citigroup, ICE BofA, JPMorgan, FTSE、Markit iBoxx etc.), benchmark index of the other asset classes might be included in the composite index (the composite index should be in compliance with the GIPS standard provided by the CFA Institute and the underlying composites should exist as a standalone composite), the cumulative gross rate of return calculated in US dollars or other currencies for the past three years, while the applicant manager shall claim that the proposed product is a multi-asset strategy on the affidavit.

5. One copy of certificate that the evaluation and expression of the proposed product investment performance is in line with the requirements of GIPS as provided by CFA Institute or the standards of other countries, provided that the applicant shall submit a certificate of equivalence of GIPS requirements. If the applicant provide with composite track record, a copy of certificate for each component strategy performance should be attached. If the standards of other countries are adopted, the certificate of equivalence of GIPS requirements shall be issued by local monetary authority, asset management association, accounting firms or GIPS verifiers.

6. Applicant managers must have branch institution(s), operation venue(s) or service team(s) within the territory of Taiwan, the Republic of China (to avoid doubt, applicant managers may appoint any financial services provider who has branch institution(s) or operation venue(s) in Taiwan to be its service team and is not required to establish any subsidiary or branch office in Taiwan).

IV. Applicant mangers please refer to the application guidelines for information on documents required and selection procedures set forth in the attachment.

V. Requesting application documents: the applicant manager should, starting from October 26, 2020, download the following application documents and related reference documents on the website of the Committee (https://www.blf.gov.tw; both English and Chinese versions are provided).

VI. Location for Submission: Please deliver on November 30, 2020 before 5:00 p.m. to the Secretarial Office of Bureau of Labor Funds locating at 10F, No.6, Sec. 1, Roosevelt Rd., Zhongzheng Dist., Taipei, Taiwan.

VII.  Contact E-mail addresses:

1. Global Infrastructure Securities:

1112@blf.gov.tw, jim@blf.gov.tw, snewly@blf.gov.tw, nanyuan@blf.gov.tw

2. Global Multi-Asset:

70154@blf.gov.tw, valenhg@blf.gov.tw, 17166@blf.gov.tw, terry@blf.gov.tw

VIII. Please refer to descriptions provided under the application guidelines and the attachments set for in the attachments for other relevant provisions.

IX. Civil Service Ethics Office (Compliance Line): +886-2-3343-5860.

Remark:

I. The presentation examination for the same mandate type under Labor Pension Fund, Labor Retirement Fund and National Pension Insurance Fund will be held together. For those applicant managers qualified for presentation examination under more than one fund for the same mandate type, the session for reply to inquiries is still 25 minutes.

II. Please use the word and excel formats provided for the application documents, while the odt and ods formats are for reference only.

 

 

  • From:Foreign Investment Division
  • Last Update Date:2020-10-26
  • Hit Rate:1240

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