Mon, Jan 10, 2011 - Page 12 News List

Labor Insurance Fund posts US$443 million profit

BOOM YEAR:The strategy used by the Labor Insurance Fund’s management team has paid off, as its investment returns managed to reach an impressive 13.86 percent

Staff writer, with CNA

The government-run Labor Insurance Fund posted NT$13 billion (US$443 million) in profits for last year, reflecting a booming local stock market, the Bureau of Labor Insurance said on Saturday.

With the NT$13 billion profit, the value of the fund has increased to NT$376.6 billion, the bureau said.

Last year, the TAIEX rose 784.39 points, or 9.58 percent, over its level at the end of 2009, closing at 8,972.50, as the local economy and global demand staged a strong rebound after the worldwide financial crisis.

The investment strategy adopted by the labor insurance fund’s management team has paid off — its returns have hit 13.86 percent, higher than the 4.28 percent returns recorded by the local bourse, the bureau said.

Looking ahead, the bureau said, the management team this year will allocate 60 percent of the fund to local financial markets, including stock and bond investments, while the remaining 40 percent will be invested overseas.

As the ceiling for overseas investment of the fund has been raised from 35 percent to 45 -percent of its total value, its portfolio is expected to become more diversified, the bureau said.

The investment returns for this year are expected to reach 3.4 percent, the bureau said.

According to the Labor Insurance Act (勞工保險條例), the financial sources of the fund include insurance premiums, interest income, penalties on overdue premiums and returns on investments. The bureau is required to submit an annual investment proposal to a committee for review.

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