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October 2021
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Taiwan’s BLF funds rebound in January-April

BLF
By Hui Ching-hoo   
June 3, 2021

Taiwan pension funds overseen by the Bureau of Labor Funds (BLF) rebounded in the first four months of 2021 with an investment gain of NT$274 billion (US$9.86 billion) after losing NT$316.6 billion in the same period last year, when global markets plunged due to the coronavirus pandemic.

This translates into a 6.07% return on investment in January through April compared with a loss of 6.9% in the year-ago period, the BLF says in a statement on June 1.

The eight pension and annuity funds under the BLF recorded a combined investment gain of NT$89 billion in April, bringing their total assets to NT$4.78 trillion.

But BLF Deputy Director General Liu Li-Ju warns that global market conditions have become “increasingly complicated”, noting that while US fiscal stimulus is expected to support global economic recovery, India and many other emerging markets are being battered by rising coronavirus cases.

The “BLF will keep an eye on [the] global market trend to prudently adjust domestic and overseas allocation for its funds”, she says in the statement.

The Labor Retirement Fund, Taiwan’s largest defined-benefit pension plan, was the best performer in January through April with a return of 8.03% versus an 8.44% loss a year ago.

The Labor Insurance Fund, the largest worker insurance scheme on the island, was in second place with a return of 5.97% compared to a 6.1% loss last year.