Taiwan’s LIF and LPF back in black
15 November 2012
By Hui Ching-hoo
Taiwan’s Council of Labor Affairs (CLA) announced on Tuesday (November 13) that the Labor Insurance Fund (LIF) and the Labor Pension Fund (LPF) combined are back in the black for the first nine months of this year, after the two funds suffered combined losses of NT$58 billion (US$1.99 billion) in 2011. The funds displayed net profits of NT$29.3 billion and NT$55.4 million, respectively, in the January to September period.
The CLA noted that 2011 marked a record annual low for LIF since it started investing overseas in 2008. Up to the end of September, LIF had recorded total accumulated profit of NT$802 billion since its inception. In a bid to enhance operations, the council will step up supervision of pension funds’ outsourcing activities and information disclosures. The Legislative Yuan and other official bodies have formed a committee to study and improve the investment performances of these pension funds.
According to a report from the China Times on November 15, CLA Minister Pan Shih-Wei proposed that the LPF and LIF follow the investment model of Temasek, an investment vehicle of the Singapore government that bundles pension fund assets under the guidance of the Ministry of Finance.
Vice Minister of Finance William Tseng responded that such an asset transfer would involve law amendments and structural reforms, noting that the government should study the feasibility thoroughly.
More News >
Discuss: Taiwan’s LIF and LPF back in black