Taiwan’s pension and annuity funds overseen by the Bureau of Labour Funds (BLF) earned NT$1.65 trillion (US$52.5 billion) of investment income for a 20.6% return in the first four months of the year as the artificial intelligence boom and a ceasefire in Iran lifted global stocks.
According to the BLF, diplomatic negotiations in the Middle East reduced risk aversion seen earlier in the year and that this, together with the continued investment momentum on AI, drove a rebound in global stocks in April.
The eight BLF funds had, on May 4, reported NT$464.5 billion of investment income and a return of 5.67% for the first quarter of the year.
“The market in April shifted from the risk-off and panic sentiment observed in March to a focus on corporate fundamentals and profitability,” the BLF says in a statement on June 1 announcing the results for January through April.
But it adds that inflation, energy prices, and geopolitical risks continue to influence market performance, and hence, the funds will maintain a steady approach and focus on long-term investment returns.
The Labour Retirement Fund, Taiwan’s largest defined-benefit retirement scheme, was the best performer among the BLF funds with a return of 31.55% for the first four months of the year.
The eight funds managed NT$9.2 trillion of assets as of end-April, up 19.4% from NT$7.7 trillion a year ago.
