Taiwan's Bureau of Labor Funds issues real estate, infrastructure mandates

The new five-year mandates come from three entities operated by the BLF - the Labor Insurance Fund (LIF), the National Pension Insurance Fund (NPIF), and the newer Labor Pension Fund (LPF), according to an announcement.

The real estate and infrastructure portfolios will total $600 million and $1.8 billion, respectively. LIF will allocate $400 million to two real estate managers and another $400 million to four infrastructure fund managers. Meanwhile, NPIF is seeking to commit $200 million to two real estate GPs, while the LPF will allocate $1.4 billion to infrastructure managers.

To qualify, GPs should have been in operation for at least three years, have a branch in Taiwan, and $5 billion or more in assets under management as of the end of last year.

In February 2014, six Taiwanese public labor fund schemes were combined and operated in a single investment department - the BLF, with about NT$2.9 trillion ($92 billion) in pension and insurance assets. Chao-His Huang, BLF's director general, told AVCJ that the system wanted to boost its alternatives exposure in 2015, with specific interest in real estate investment trusts (REITs) and listed infrastructure securities.

By the end of 2015, the LPF - the biggest of the six funds with NT$1.32 trillion in assets as of the end of January - will see its allocation to alternatives increase to 8% from 6% in 2014. A year ago it was just 4%. The older Labor Retirement Fund, meanwhile, with NT$635 billion in assets, will see its allocation jump to 4% from 3%; and the NT$627 billion LIF will move to 5% from a current level of less than 1%.

The NPIF managed NT$193 billion as of January 2015.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Greater China
• Real estate
• LPs
• Fundraising
• Taiwan (China)
• Real estate
• Infrastructure
• LPs
• Fundraising