Sources in Taipei report that the mandates are all labelled global balanced but in fact are absolute-return mandates, a first for a Taiwanese public fund.
The Bureau of Labour Insurance had attempted to issue absolute-return mandates last year but cancelled the programme when it realised it would struggle with its refusal to countenance the use of derivatives.
The PSPF also does not allow the use of derivates, except to hedge. This can be a nebulous rule. The PSPF will require managers...
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