Labor Pension Fund generated 4.8%, figures show

By Amy Su  /  Staff reporter

Fri, Jan 18, 2013 - Page 14

The Labor Pension Fund generated NT$65.9 billion (US$2.27 billion) in net profit last year on the back of investment gains, translating into a rate of return of 4.8 percent, the fund announced yesterday.

The fund has reported net earnings of NT$90.82 billion since it was established in the second half of 2007.

Last year’s strong performance helped make up for losses recorded in 2008 and 2011.

In 2011, the fund made a loss of NT$26.4 billion.

“The fund has always focused on protecting labor rights and holds an investment strategy of stable operation,” Labor Pension Fund Supervisory Committee vice chairperson Liu Li-ju (劉麗茹) said in a statement.

Under the new scheme, the labor pension fund posted NT$40.6 billion in net profit last year, translating into an earnings yield of 5.02 percent, while profit generated by the fund under the old scheme totaled NT$25.3 billion, with a rate of return of 4.5 percent, both marking the highest level in three years, the statement said.

Investment in the global real-estate securities market — which the fund last year initiated by outsourcing — created an accumulated rate of return of 22.31 percent for last year, the fund’s data showed.

Meanwhile, the earning rates for self-operating investment gains from the local stock market and overseas equity markets last year amounted to 15.86 percent and 16.14 percent respectively, its data showed.

The fund’s committee will continue pursuing long-term profitability, Liu said.