Taipei: Funds managed by the Ministry of Labor's Bureau of Labor Funds reported substantial year-to-date returns in the first seven months of 2025, after achieving NT$148.0 billion (US$48.36 billion) in gains in July as global financial markets showed signs of stabilization.
According to Focus Taiwan, the bureau stated that the accumulated gains in the value of assets in the funds' portfolios and income on investments amounted to NT$64.4 billion from January to July. This marked a significant recovery from NT$83.6 billion in aggregate losses recorded from January to June, effectively reversing the losses sustained in the first half of the year.
The significant performance in July was attributed to the United States reaching agreements with trading partners during tariff negotiations, with new levies set to take effect in August, as explained by the bureau's Deputy Director-General Liu Li-ju at a news conference. Liu highlighted that global stock markets, led by tech giants, experienced upward movement; however, a stronger Taiwan dollar against the U.S. dollar led to foreign exchange losses for the funds, which slightly diminished their overall gains.
Throughout the seven-month period, the Taiex, the benchmark weighted index on the Taiwan Stock Exchange (TWSE), experienced a rise of 2.20 percent, while the MSCI World Index surged by 11.54 percent. Additionally, the Taiwan dollar appreciated by 8.82 percent against the U.S. dollar during this time.
According to the bureau, 57.21 percent of the labor funds' investments were made overseas, with the remaining 42.79 percent invested domestically. The combined value of the funds managed by the bureau, which includes the Labor Pension Fund, Labor Retirement Fund, Labor Insurance Fund, Employment Insurance Fund, and Arrear Wage Payment Fund, amounted to NT$7.10 trillion as of the end of July. The NT$64.4 billion gains represent a rate of return of 0.94 percent for the first seven months of the year.
The new Labor Pension Fund, initiated in 2015, reached NT$4.66 trillion in assets by the end of July, achieving a rate of return of 0.61 percent up to that point. Meanwhile, the Labor Retirement Fund, established in 1984, held approximately NT$1.03 trillion in assets with a return rate of 3.29 percent.
As global stock markets maintain momentum and the Taiwan dollar stabilizes against the U.S. dollar in August, these labor funds are expected to continue reporting positive returns, further enhancing the accumulated gains, Liu noted.
In parallel developments, the Bureau of Public Service Pension Fund announced that the Public Service Pension Fund it manages recorded NT$11.54 billion in gains over the first seven months of the year, reflecting a rate of return of 1.15 percent.