FTSE Group (“FTSE”), the award winning global index provider, expands its footprint with asset owners in Asia following the announcement of three new mandates issued totalling USD 3.3 billion by 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 USD 600 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 USD 16 billion.
LPF, Taiwan’s government pension fund for the labour force with assets totalling over USD 39 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 USD 0.9 billion to the FTSE EPRA/NAREIT Global Real Estate Index which has become the benchmark of choice among asset owners globally for real estate investment.
Jessie Pak, Director, Asia for FTSE Group said “We are delighted to broaden our long standing relationship with LPF and be chosen by PSPF for the first time. FTSE strives to work closely with asset owners across Asia to provide benchmark solutions that individually meet their unique needs whether for equities or alternatives investment. “