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Taiwan private teachers’ pension posts record investment returns in 2019

By Asia Asset Management  
January 15, 2020

Taiwan’s Retirement and Compensation Fund for Private Schools (Private School Fund) earned record investment returns in 2019 for all three of its funds, which rebounded from the prior year’s losses thanks to gains in domestic and global stocks.

The Private School Fund provides members with a choice of three funds based on their risk tolerance.

The funds – conservative, steady growth and aggressive – posted year-on-year investment returns of 6.37%, 14.74%, and 19.41%, respectively, in 2019, the Private School Fund says in a statement on January 13. The accumulated investment returns since the funds were introduced in 2013 were 13.73%, 44.35%, and 45.35%, respectively.

The statement did not provide reasons for last year’s record-breaking returns.

According to a spokesperson for the Private School Fund, the recovery from losses in 2018 was primarily due to a global stock market rally.

“The aggressive fund, which allocates 94% [of total assets] to international equities, mainly benefited from the US market uptick last year,” the spokesperson tells Asia Asset Management. “The steady growth and conservative funds, which have [a] relatively high domestic position, were boosted by the bullish Taiwanese stock market.”

Taiwan’s benchmark stock index gained over 28% in 2019.

The Private School Fund, a defined-contribution pension plan for more than 51,000 private school teachers and staff, had NT$57.8 billion (US$1.93 billion) of total assets at the end of 2019.