FTSE in USD3.3 billion mandates from Taiwan pension funds
Global index provider FTSE Group figured in three new mandates totalling USD3.3 billion from two of Taiwan’s largest pension funds, the Public Services Pension Fund (PSPF) and the Labour Pension Fund (LPF).
FTSE’s core global equities offering, the FTSE All-World Index, has been chosen for the first time by PSPF as the benchmark for a USD600 million global developed equities mandate. The PSPF is a mandatory defined-benefit scheme for civil servants, teachers and military personnel in Taiwan with assets totalling over USD16 billion.
LPF, Taiwan’s government pension fund for the labour force with assets of over USD39 billion, has benchmarked their equity investments against the FTSE All-World Index for several years and FTSE now extends this relationship to alternative benchmark solutions. For the first time, LPF has allocated USD 1.8 billion to passively track the fundamentally weighted FTSE RAFI All-World 3000 Index.
In Asia, FTSE has previously licensed non-market cap weighted indices such as the FTSE RAFI indices in Australia, Hong Kong and Japan as asset owners seek new approaches to diversify portfolios and enhance returns. LPF has also allocated USD900 million to the FTSE EPRA/NAREIT Global Real Estate Index which has become the benchmark among asset owners globally for real estate investment.