A booming equity market in the country has boosted the value of the Executive Yuan’s National Development Fund (NDF) to more than NT$1 trillion (US$33.3 billion) for the first time in its 47-year history, a quarterly report released on Tuesday showed.
The fund, which was established in 1973 to invest in the industrial sector and foster domestic economic growth, saw its assets reach NT$1.0093 trillion at the end of last year.
The fund’s investments made a profit of NT$23.24 billion last year, with its net worth reaching NT$758.54 billion, the report said.
A fund official attributed results to a strong showing by the local equity market, with the TAIEX rising 2,269.33 points, or 23.3 percent, increasing the value of equities owned by the fund.
The higher asset value and profit also reflected an increase in returns on the fund’s investments, the official said.
Market analysts said the solid gains posted by Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) were one of the major drivers to the fund’s increased assets and profits, as the NDF is one of the chipmaker’s largest shareholders, with a 6.38 percent stake.
TSMC’s shares rose 46.78 percent, meaning that the value of the shares owned by the NDF rose by about NT$174.50 billion, while the chipmaker also paid large dividends to its shareholders, which also boosted the fund’s assets and profit, analysts said.
TSMC issued a NT$10 cash dividend per share, meaning the NDF received NT$16.54 billion.
Keen to cultivate local venture capital to help boost the domestic investment environment, the NDF launched the Business Angel Investment Program in May 2018.
As of the end of December, the fund had provided NT$967 million to 75 start-ups, the report said.
The NDF’s angel investor program has drawn a great deal of attention from start-ups and there has been a steady increase in applications for funding, the fund official said.
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