Taiwan’s BLI responds to naysayers
11 December 2012
News, Asia, Taiwan
By Asia Asset Management
Taiwan’s Bureau of Labor Insurance (BLI) has brushed off a report from the Legislative Yuan that suggests investment results for the Labor Insurance Fund (LIF) have been poor in comparison to its OECD counterparts.
In its defence, BLI said on its website on Monday (December 10) that total AUM of the LIF had grown from NT$108.9 billion (US$3.63 billion) in 1995 to NT$535.6 billion by the end of October this year. The pension fund recorded an investment profit of NT$226.8 billion during the same period, translating into growth of 4.04% per annum.
This compared to the inflation-adjusted return of -0.16% between 2007 and 20011, and 0.1% between 2001 and 2010 for the OECD countries. California Public Employees Retirement System (CalPERS), for example, saw investment performances fluctuate substantially between 2001 and 2011 due to investments in risky assets such as alternatives and private equities, BLI said.
Therefore, the bureau says the figures should not be used as a yardstick; rather, it would be more appropriate to make comparisons based on risk-adjusted returns.
BLI noted that the LIF publically issues performance reports on external fund managers’ operations and investments on a monthly basis to ensure transparency.
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