Labor funds report 4th highest gains in September as global stock markets soar - Focus Taiwan
The Bureau of Labor Funds, managed by the Ministry of Labor, saw its September performance rank as the fourth highest in history, according to a recent report. This achievement is attributed to the strong performance of global stock markets during the month. The bureau's data reveals that labor funds managed a total of NT$216.7 billion (US$7.08 billion) in September, trailing only August's NT$277.8 billion, March 2024's NT$242.2 billion, and November 2020's NT$240.2 billion.
The accumulated gains for the first nine months of the year reached an impressive NT$558.8 billion, a significant increase from the previous period. This growth is largely attributed to the surge in the Taiex, a weighted index on the Taiwan Stock Exchange, which rose by 12.09 percent in September. The MSCI World Index also experienced a remarkable 18.44 percent jump, driven by the artificial intelligence development boom and the U.S. Federal Reserve's rate cut cycle.
The bureau's data further highlights the distribution of investments. 57.67 percent of the labor funds' investments were made overseas, while the remaining 42.33 percent were invested domestically. The combined value of the funds managed by the bureau, including the Labor Pension Fund, Labor Retirement Fund, Labor Insurance Fund, Employment Insurance Fund, and Arrear Wage Payment Fund, stood at a substantial NT$7.44 trillion as of September 30.
Based on this value, the NT$558.8 billion in gains translates to an 8.14 percent return on investment for the first nine months of the year. The Labor Pension Fund, launched in 2015, boasts the highest asset value at NT$4.92 trillion, with a 7.69 percent return on investment so far this year. The Labor Retirement Fund, established in 1984, has assets of approximately NT$1.04 trillion and a 12.57 percent return.
In contrast, the Public Service Pension Fund managed by the Bureau of Public Service Pension Fund recorded NT$78.87 billion in gains for the first nine months of the year, with a 7.80 percent return on investment.
