The $300 billion profit-to-member fund has linked up with Oxford Properties for a portfolio of high-quality European industrial and logistics assets that it wants to expand significantly over the next three to five years.
Australia’s megafunds are looking to international asset owners for ideas on how to invest what will soon be trillions in retirement savings. But banks – with their sharp focus on efficient implementation and balance sheet management – could also be a source of inspiration.
Big multi-asset mandates up for grabs
Taiwan’s Bureau of Labor Funds (BLF) has gone to tender with US$5.3 billion worth of new investment mandates, including four for the increasingly popular multi-asset partnerships.
The mandates are for global multi-asset and enhanced Asia-Pacific mixed equity under its four affiliate labour pensions and national pension schemes. In Australia, Sunsuper announced last month its new multi-asset partnership, for an as-yet unspecified amount, choosing Neuberger Berman and JP Morgan Investment Management.
The BLF said in a statement that the total size of the global multi-asset mandate amounts to US$3.2 billion. Of this, US$1.8 billion will be mandated to four selected managers for the Labor Pension Fund’s (LPF’s) defined contribution New Scheme. Each will receive US$450 million.
A further US$600 million will be mandated to four selected managers for the LPF’s defined benefit Old Scheme, where US$150 million will be delegated to each manager, the Hong Kong-based newsletter Asia Asset Management reported last week.
Another $800 million will be granted to four selected managers for the Labor Insurance Fund (LIF). Each will be awarded a quota of US$200 million.
The total amount of the enhanced Asia-Pacific mixed equity mandate is US$2.1 billion. US$1.5 billion of which will be outsourced to three selected managers for the LPF’s New Scheme, with US$500 million to be mandated to each manager. US$300 million will be allotted to three managers for the LIF. Each will receive US$100 million. As well, US$300 million will be granted to three managers for the National Pension Insurance Fund (NPIF). Each will receive US$100 million.
The bureau stated that eligible applicants must have global assets under management of no less than US$5 billion and relevant investment track records for three years up to September 30, 2015.
The duration of the appointments is five years. The two mandates will be open for submissions until January 25, 2016, Asia Asset Management said.
