Taiwan’s Bureau of Labor Funds has selected five global asset managers to execute a $3 billion climate transition infrastructure passive investment mandate. Amundi Asset Management, BNP Paribas Asset Management (Europe), Geode Capital Management, Northern Trust Asset Management (Australia), and State Street Global Advisors (Singapore) have each been allocated $600 million for a five-year term.
The capital allocation for each manager comprises $400 million from the Labor Pension Fund, alongside $100 million each from the Labor Insurance Fund and the National Pension Insurance Fund. The mandate targets listed infrastructure companies with exposure to the global energy transition, using the FTSE Global Core Infrastructure TPI Climate Transition (ex-China) index as its operational benchmark.
The BLF, operating under Taiwan’s Ministry of Labor, launched the search for managers in March to identify firms capable of tracking forward-looking climate transition assets. Yu-Ching Su, Director General of the BLF, noted that combining the income potential of listed infrastructure with long-term trends like rising electricity demand enhances portfolio resilience and advances sustainable investment principles.
Su explained that opting for a passive strategy offers cost efficiency and broad diversification while complementing the fund’s existing active infrastructure holdings. The selection process evaluated managers on tracking accuracy, portfolio construction, liquidity management, and expertise in climate and infrastructure investing. The BLF will now proceed to finalize mandate agreements with the five chosen managers, with capital deployment aligning with annual asset allocation schedules.
