Key Takeaways
- • Taiwan's Bureau of Labor Funds (BLF) selected five external managers on July 16 for a $3B passive climate infrastructure mandate, according to Markets Group reporting.
- • The five managers are Amundi Asset Management, BNP Paribas Asset Management Europe, Geode Capital Management, Northern Trust Asset Management Australia and State Street Global Advisors Singapore, each receiving up to $600M.
- • Each manager's $600M allocation comprises $400M from the Labor Pension Fund, $100M from the Labor Insurance Fund and $100M from the National Pension Insurance Fund, with five-year agreements.
- • The mandate tracks the FTSE Global Core Infrastructure TPI Climate Transition Index (ex-China) and targets companies with forward-looking climate transition management capabilities.
Summary
Taiwan's Bureau of Labor Funds completed its selection of external managers on July 16 for a new $3 billion "Global Climate Transition Passive Infrastructure Securities" overseas mandate, according to Markets Group. The BLF chose five firms from a field of international asset managers after what it described as a "rigorous review and multi-stage evaluation process." The selected managers are Amundi Asset Management, BNP Paribas Asset Management Europe, Geode Capital Management, Northern Trust Asset Management Australia and State Street Global Advisors Singapore.
The mandate will be funded jointly by the Labor Pension Fund, the Labor Insurance Fund and the National Pension Insurance Fund in fiscal 2026. Each manager will receive $400 million from the Labor Pension Fund, $100 million from the Labor Insurance Fund and $100 million from the National Pension Insurance Fund, for a combined $600 million per manager. Agreements run for five years. Other coverage described the allocation as equal parts across the five managers.
The strategy is passive and benchmarked to the FTSE Global Core Infrastructure TPI Climate Transition Index (ex-China). The BLF said the approach is intended to give the funds low-cost exposure to global infrastructure markets while backing companies undergoing structural transition and capturing growth tied to that shift. Targeted companies are those with what the BLF called "forward-looking climate transition management capabilities."
The BLF said the funds' management has "consistently adhered to the principle of seeking long-term and stable returns." In setting mandates, the bureau weighs each fund's asset growth, cash flows, existing allocation and long-term trends alongside market and economic conditions, while diversifying across currencies and asset classes to cushion volatility.
The mandate will be funded jointly by the Labor Pension Fund, the Labor Insurance Fund and the National Pension Insurance Fund in fiscal 2026. Each manager will receive $400 million from the Labor Pension Fund, $100 million from the Labor Insurance Fund and $100 million from the National Pension Insurance Fund, for a combined $600 million per manager. Agreements run for five years. Other coverage described the allocation as equal parts across the five managers.
The strategy is passive and benchmarked to the FTSE Global Core Infrastructure TPI Climate Transition Index (ex-China). The BLF said the approach is intended to give the funds low-cost exposure to global infrastructure markets while backing companies undergoing structural transition and capturing growth tied to that shift. Targeted companies are those with what the BLF called "forward-looking climate transition management capabilities."
The BLF said the funds' management has "consistently adhered to the principle of seeking long-term and stable returns." In setting mandates, the bureau weighs each fund's asset growth, cash flows, existing allocation and long-term trends alongside market and economic conditions, while diversifying across currencies and asset classes to cushion volatility.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.