Taiwan pension and annuity funds supervised by the Bureau of Labor Funds (BLF) posted a sharply higher investment return of 7.06% in the first seven months of 2021 compared to 0.75% a year ago on the back of the global economic rebound from the coronavirus crisis, and the strength of the local semiconductor industry.
The funds’ investment gain in January through July increased more than ten-fold to NT$351.63 billion (US$12.65 billion) from NT$34.5 billion in the first seven months of 2020, BLF says in statement on September 2.
Their assets under management as of July was NT$5.41 trillion, up from NT$4.79 trillion a year ago.
The BLF notes that the global economy has been recovering thanks to improving vaccination rates against Covid-19, and infrastructure stimulus packages in major economies.
“We’re optimistic on Taiwan’s export growth in the second half with the strong performance of the local semiconductor industry, and digital consumption,” the BLF says, adding that it will closely monitor global financial market trends and bolster risk controls to protect fund members’ retirement and social security.
The Labor Retirement Fund (LRF), Taiwan’s largest defined-benefit retirement scheme, was the best performer among the BLF funds, with an investment return of 8.22% in January-July compared to 0.85% a year ago.
The National Pension Insurance Fund was the second best, with a return of 7.27% versus 1.79% last year. The fund provides old age and disability protection.