Taiwan labour pension funds post 4.64% return in first half

22 July 2014   Category: News, Asia, Global, Taiwan   By Hui Ching-hoo

Labour pension funds overseen by Taiwan’s Bureau of Labor Funds (BLF) secured an average investment return of 4.64% for the first six months of this year, translating into NT$109.1 billion (US$3.63 billion) in revenue.

The BLF, which was formed via the merger of the Labor Pension Fund Supervisory Committee (LPFSC) and the Bureau of Labor Insurance (BLI) in February, is responsible for the overall planning and utilisation of the Labor Pension Fund (LPF), Labor Insurance Fund (LIF), the Employment Insurance Fund (EIF), the Overdue Wages Payment Fund (OWPF), and the Occupation Incidents Protection Fund (OIPF).  

BLF Deputy Director General Liu Li-ju stated that the LPF’s defined benefit (DB) Old Scheme, or the Labor Retirement Fund (LRF), topped its peers to secure a return of 5.46%, which was followed by the LPF’s defined contribution (DC) New Scheme at 4.73%.

Meanwhile, the LIF notched up its highest return for five years at 4.38%.

In response to speculation that the pension funds succumbed to losses stemming from stock speculation by Yuanta SITC, First SITC, and Shin Kong SITC, the BLF clarified that the three companies are currently not the pension funds’ delegated managers.

Yuanta SITC made a loss of around NT$7.8 million when it was in charge of a domestic mandate between 2011 and 2012.

If any loss was proved to be in connection to any alleged misconduct of the fund manager, the bureau would claim compensation against the deficit, the BLF said.