Amundi, BNPP AM, Geode, NTAM and State Street Awarded $3 Billion Climate Transition Infrastructure Investment Mandate by Taiwan Pension Funds

Taiwan’s Bureau of Labor Funds (BLF) announced that it has selected a group of asset managers for the award of USD$3 billion of mandates for passive overseas investment in global climate transition infrastructure.

The five asset managers selected by BLF include Amundi, BNP Paribas Asset Management, Geode Capital Management, Northern Trust Asset Management Australia, and State Street Global Advisors Singapore. Each of the managers will be entrusted with $600 million 5-year mandates, including $ 400 million from the Labor Pension Fund, $100 million from the Labor Insurance Fund, and $100 million from the National Pension Insurance Fund.

According to the BLF, the new passive investment mandates are aimed at enabling participation in the global infrastructure market at relatively lower cost, while serving the dual objectives of supporting companies in advancing structural transition and capturing investment growth opportunities.

When the BLF initially announced its public solicitation for bids for the mandates earlier this year, it said:

“With the rapid development of artificial intelligence (AI), cloud computing, and the digital economy, investment opportunities in related infrastructure are driving growth. These assets often feature stable cash flow, rigid demand, and resilience to economic cycles, helping to balance long-term returns and enhance portfolio defense. Moreover, amid the global energy transition trend, electricity and related infrastructure are gradually moving toward low-carbon development.”

The new mandate will use the FTSE Global Core Infrastructure ex China TPI Climate Transition Index as its benchmark, which the BLF said targets companies with forward-looking climate transition management capabilities.

The BLF said:

“Through a passive investment approach, the mandate aims to participate in the global infrastructure market at relatively lower cost, while serving the dual objectives of supporting companies in advancing structural transition and capturing investment growth opportunities.”

image credit: 臺北市建築管理工程處, Attribution, via Wikimedia Commons