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News Outlook Labor Fund earned NT$168.3 billion as of July 31, 2017

Since the beginning of this year, major economies have grown steadily and financial markets are continuing to grow. The Labor Fund prudently adjusted its global investment portfolio according to market conditions, and as of July 31, the overall fund size has reached NT$3.4871 trillion, with proceeds of NT$168.3 billion and a yield of 5.08%.

As of July 31, 2017, the Labor Pension Fund (the new fund) amounts to NT$1.791 trillion; the Labor Retirement Fund (the old fund) NT$848.7 billion; the Labor Insurance Fund NT$712.5 billion; the Employment Insurance Fund NT$112.4 billion; the Occupation Incidents Protection Fund NT$10.4 billion; and the Arrear Wage Payment Fund NT$12.1 billion. As of July 31 this year, the rates of return for the Labor Pension Fund, Labor Retirement Fund, Labor Insurance Fund, Employment Insurance Fund, Occupation Incidents Protection Fund and Arrear Wage Payment Fund were 5.17%, 5.36%, 5.51%, 0.10%, 0.54% and 1.16%, respectively.

For the long term, the amount of return on stocks and other high-risk assets is dependent upon economic growth. Factors which determine long term economic growth include the labor force and labor productivity. Developed countries face the problems of low birth rates and an aging population. This, coupled with the high savings rates of emerging economies, result in low economic growth and low interest rates. Investors are faced with the challenges of long-term structural change. The Bureau of Labor Funds will closely monitor the research and views of international organizations on future economic developments in order to keep track of the global financial situation, guide labor funds towards stable long term income, and safeguard the economic security and retirement of workers.

Keywords: labor fund, utilization of proceeds, diversification

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