News Release of the Management Board of the Public Service Pension Fund, Ministry of Civil ServiceDecember 15, 2003 The Public Service Pension Fund held a joint contract-signing ceremony with tea party today for its first overseas discretionary operation at which over one hundred guests from the asset management industries, the government, and the academics participated. According to the Management Board of Public Service Pension Fund (MBPSPF) of Ministry of Civil Service (MOCS), a joint contract-signing ceremony with tea party took place today at the auditorium on 10th floor of Chuan-hsien Building, Examination Yuan. The ceremony was warmly opened. The delegates of the selected custodian bank, the Citibank and the five International asset management companies (IAMCs): Barclays Global Investors Limited, State Street Bank & Trust Company, J.P. Morgan Investment Management Inc., UBS Global Asset Management (Singapore) Ltd., and Allianz Dresdner Asset Management of America L.P were present. At the same time, Mr. Chiou I-jen, the Secretary General of the Office of the President, Mr. Yao Chia-wen the President of the Examination Yuan, and the chief government officials from the related departments to the Executive Yuan and the Examination Yuan were also invited to conduct the ceremony. Besides, several officers from the financial, economic, and legal fields, delegates from the securities and asset management industry, and other three government funds took part in this particular occasion too. Mr. Chiou I-jen, the Secretary General of the Office of the President, delivered an opening speech. “The public Service Pension fund should be requested to maintain a stable and long term performance so that the rights of military personnel, civil servants, and teachers participating in the pension fund can be protected; the PSPF gradually extends its investment to overseas is a right direction”, he stated. Mr. Chiou also expressed, “ The launch of the international outsourcing madates by the MBPSPF not only opens an window to communicate with the international society but also embeds the diligence and effort of Taiwan government fund in its memory. The MBPSPF exert fully the action of “cultivating in Taiwan and making global arrangement”, he added , “Under the participation and cooperation among numerous remarkable international investment institutions and global custodian banks, it shows off that the internationality-level institutions are confident of the future prospects to the economic development of our country; moreover , it reveals the government’s decision of making efforts on economy and on great revolution as well as the actual effect.” Mr. Yao chia-wen, the president of the Examination Yuan, made a remark in the joint contract-signing ceremony, “ The goals of the outsourcing plan are to execute the asset allocation plan and increase the investment profits through the rational operation of the profession. After pushing three-time domestic outsourcing programs, the MBPSPF has intensively perceived that investment solely in the domestic market will make it hard to avoid the risk arising from investment in a single region, and the overseas discretionary operation will make the risks effectively dispersed.” “There were twenty six applications submitted by eminent international large asset management companies to compete with others for the five contracts totaled US$500 million on the MBPSPF’s first stage of overseas outsourcing. It is expected that other government funds such as the fund of Chunghwa Post Co. Ltd., the labor retirement fund, the labor insurance reserve fund, and other domestic institutions will follow up, ” he added. “The expansion of the overseas outsourcing fund size not only let the Public Service Pension Fund (PSPF) keep pace with the trend of pension fund managed by the advanced countries in the world but also indirectly help the domestic asset management industry upgrade its investment expertise by absorbing the experiences of elites from the international asset management industries”. Mr. Wu Rong-ming, chairman of the MBPSPF, concurrently serving as the Minister of Civil Service, expressed that the total number of participants is 617,424 and the growing fund size is NT$226.1 billion in this pension fund as of the end of November, 2003. He indicated that the MBPSPF has positively mapped out its overseas investment plan to abide by the government farming out policy, improve the management performance of the fund, and lower the regional investment risk by means of overseas investment. “The first selection procedure of the designated asset management companies and custodian bank has smoothly accomplished through fourteen conferences contributed by scholars, experts and related agencies. Having significantly epoch-making meaning of indication, the MBPSPF initiates its overseas designated management“. “In view of the eager participation, it enveils that the international investment institutions have enough confidence of developing prospect to the economy of our country,” stressed Minister Wu. One of the representatives of the Five international asset management companies also stressed, “ We would like to take this opportunity to pay our respect to the professional and systematic PSPF manager selection procedures”. “We considered that the MBPSPF has made an overseas outsourcing model to the Taiwanese government funds, and we committed ourselves to using our investment management expertise and experience to the PSPF in hopes of maturing the fund market in Taiwan. The MBPSPF also announced that the future policy of PSPF is to ”put the same stress on the discretionary management and the self- management”, ”Keep equal attention on domestic investments and foreign investments” for the purpose of achieving the goal so as to make the highest benefits for the participants by means of professional management and execution.