Head of Taiwan’s BLF to retire

Jan 8, 2017

Huang Chao-hsi will step down from the $106 billion state pension fund on January 16; his successor has not been announced yet.

The head of Taiwan's Bureau of Labor Funds, who has worked for the $106 billion state pension manager for nearly a decade, is to retire, leaving a strong legacy. Huang Chao-hsi will step down on January 16, and his replacement has not yet been announced.

Liu Li-ju, one of the two deputy director generals, seems a likely candidate for the role, as she has typically covered for Huang when he has been away from the office.

The head of BLF is appointed by the ministry of labour and can be an internal or external appointment. If the new head is named after January 16, the institution will be temporarily led by either Liu or the other deputy director general, Tsai Chung-chun. They both assumed their current posts when BLF was set up in February 2014.

Huang became the chairman of the Labor Pension Fund supervisory committee (LPFSC), which later became BLF, in 2007, and took the helm at BLF in February 2014.

BLF was established as part of the government’s move to make public- sector organisations more efficient. The LPSFC bcame BLF, and investment personnel from the Bureau of Labor Insurance (BLI) were also brought under the new entity, which now coordinates the investment management of six funds.*

Huang is widely respected for his achievements at BLF. He received an award from AsianInvestor in November for his individual contribution to institutional investment. He was honoured for navigating BLF through its set-up and leading it to deliver benchmark-beating performance through investment diversification and innovation in a very challenging market environment.

BLF also won two of AsianInvestor’s other Institutional Excellence Awards in November, in the categories of pension fund (overall) and innovation.

Huang's first job was as an associate at the ministry of finance. He has also worked as head of the finance bureau in Tainan city, director general of the department of financial analysis, chief secretary at Taiwan’s council for economic planning and development, and executive secretary of the country's National Development Fund.

Liu joined the LPFSC in 2007 when the committee was established, as its chief secretary. She became the LPFSC's vice chairperson in 2011. She was also senior specialist and section chief for the executive officer department of labor standards in the Council of Labor Affairs.

Tsai was an executive vice president at BLI, before it was folded into BLF.

As of end November, BLF managed NT$3.55 trillion ($106 billion) assets, and posted a return of 2.54% in the first 11 months of 2016.

It is currently inviting bids for $6 billion in mandates for environmental, social and governance (ESG) and absolute-return fixed income portfolios. The deadline for applications is 5pm on January 16.

*The six funds are: Labor Pension Funds (new and old schemes), Labor Insurance Fund, Employment Insurance Fund, Occupation Incidents Protection Fund, Arrear Wage Payment Fund and National Pension Insurance Fund.