Taiwan Bureau of Labor Funds selects FTSE4Good TIP Taiwan ESG Index for $1.4 billion mandate
- BLF first fund to track FTSE4Good TIP Taiwan ESG Index
- BLF has issued a 5-year passive mandate with an initial total size of USD $1.4 billion
- Growing demand for sustainable investment and globally recognised ESG standards in the domestic Taiwanese market
- FTSE4Good TIP Taiwan ESG Index is part of FTSE Russell’s extensive sustainable investment index and data offering
FTSE Russell, the global index and data provider, is delighted to announce that the Taiwan Bureau of Labor Funds (BLF), one of the largest public-sector funds in Asia has selected the FTSE4Good TIP Taiwan ESG Index for a significant new equity mandate. BLF has issued a five year passive mandate with an initial total size of USD $1.4 billion.
The FTSE4Good TIP Taiwan ESG Index was launched in December 2017 and was developed in partnership with Taiwan Stock Exchange’s (“TWSE”) wholly-owned subsidiary, Taiwan Index Plus Corp (TIP). The FTSE4Good TIP Taiwan ESG Index is part of FTSE Russell’s extensive Sustainable Investment index and data offering and reflects the performance of companies listed on the Taiwan Stock Exchange that meet the globally recognised ESG inclusion standards used by the FTSE4Good Index Series.
FTSE Russell continues to see a growing demand, both in Asia and globally, for asset owners to integrate ESG considerations into their investment strategies. This trend started with active funds but now ESG integration into passive strategies is also gaining momentum. This is a global trend, and in Asia this follows the decision by the Government Pension Investment Fund (GPIF) of Japan to select the FTSE Blossom Japan Index as a core ESG benchmark through its flagship fund.
The FTSE4Good TIP Taiwan ESG Index is constructed using the FTSE4Good methodology with selection criteria covering ESG Ratings as well as financial performance criteria. The ESG Ratings are comprised of an overall Rating that breaks down into underlying ESG exposure measures and performance score that are built on over 300 individual indicator assessments. The index is designed for use in the creation of index tracking funds, derivatives and as performance benchmarks.
Jessie Pak, Managing Director, Asia, FTSE Russell said:
“We are delighted to be working with the Taiwan Bureau of Labor Funds to support them in integrating ESG considerations into their investment strategies. Our recently launched FTSE4Good TIP Taiwan ESG index supports the growing demand for sustainable investment and globally recognised ESG standards in the domestic Taiwanese market. This important new FTSE Russell passive ESG allocation builds on our strong momentum and track record in this area”. Billy Wang, President and CEO, Taiwan Index Plus Corporation said: “As sustainable investing is gaining traction among international investment communities, institutional investors in Taiwan are also placing priority in embracing sustainable investment performance and disclosure. Taiwan Bureau of Labor Funds (BLF), as the leading national public pension fund, was not only the first to endorse the stewardship code in Taiwan but is also the first to select the FTSE4Good TIP Taiwan ESG Index as a core ESG benchmark. This further recognises the growing importance of sustainable investing in Taiwan”.
Billy Wang, President and CEO, Taiwan Index Plus Corporation said:
“As sustainable investing is gaining traction among international investment communities, institutional investors in Taiwan are also placing priority in embracing sustainable investment performance and disclosure. Taiwan Bureau of Labor Funds (BLF), as the leading national public pension fund, was not only the first to endorse the stewardship code in Taiwan but is also the first to select the FTSE4Good TIP Taiwan ESG Index as a core ESG benchmark. This further recognises the growing importance of sustainable investing in Taiwan”.
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