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Bureau of Labor Insurance extends contract with investment companies

The Bureau of Labor Insurance said yesterday it was extending its contract with seven investment trust companies to manage its Labor Insurance Fund, which has reported bright returns in the past three years.

The bureau signed a three-year contract to entrust a total of NT$20.5 billion (US$629 million) to seven investment trust companies -- Fubon Securities Investment Trust Co (富邦投信), Cathay Securities Investment Trust Co (國泰投信), Invesco Taiwan Ltd (景順投信), First Global Investment Trust Co (元大投信), President Investment Trust Corp (統一投信), Jih Sun Securities Investment Trust Co (日盛投信) and Fuh Hwa Securities Investment Trust (復華投信) -- on Oct. 1, 2004.

As of Monday, the average investment return for the fund was 72.62 percent, or NT$14.87 billion, bureau president and chief executive Ingrid Liao (廖碧英) told a press conference. The required return of the fund is 7 percent annually.

The figure outperformed the average investment return of the stock market 61.46 percent during the three year period, Liao said.

Fubon Securities had the highest performance, with a 128.63 percent return, followed by Cathay Securities at 105.68 percent and Invesco at 100.54 percent, the bureau said.

The bureau also increased the fund to be managed by Fubon Securities by NT$3 billion and that by Invesco by NT$2 billion.

"Given the rosy results, we hope to increase the percentage of funds to be managed by investment trust companies," Liao said, without giving specific figures.

At the end of August, 19.6 percent of the fund was managed by local investment trust companies and 3.63 percent by overseas fund managers, bureau data showed.
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