Labor Fund Performance: Earned NT$2.2 Trillion in First Half with 28.46% Return; New Pension Plan Averages Over NT$110,000 per Account

The Labor Fund has announced impressive performance for the first half of the year, with total fund assets reaching NT$8.8955 trillion by the end of June. The fund generated NT$2.2024 trillion in returns, achieving a cumulative yield of 28.46%, once again setting a new historical record. This strong performance was fueled by Taiwan’s stock market surpassing the 46,000-point mark and robust global demand for AI technology. The average dividend for participants in the new labor pension scheme reached NT$111,600, reflecting solid growth across all managed funds.

According to the latest statistics released by the Labor Fund Administration, as of the end of June 2024, the total size of the labor fund stood at NT$8.8955 trillion, with returns amounting to NT$2.2024 trillion and a yield of 28.46%. Monthly returns were recorded at NT$77.2 billion, also marking a new historical high.

The newly established labor pension fund, which has drawn significant attention, reported returns of NT$1.52786 trillion and a yield of 28.19%. Based on 13.1 million active accounts eligible for profit distribution, the average payout per account reached NT$111,600—providing tangible benefits to millions of workers.

Due to differing mandates and regulatory constraints, individual funds have varied investment targets and thus slightly different returns. The legacy labor pension fund, with assets of NT$1.1623 trillion, achieved an exceptionally high yield of 40.74%. The labor insurance fund, valued at NT$1.6821 trillion, posted a 25.17% return. The employment insurance fund (NT$189.3 billion) returned 1.94%, while the occupational injury insurance fund (NT$39 billion) yielded 1%. The wage arrears compensation fund (NT$26.5 billion) achieved a 15.64% return. Additionally, the National Pension Insurance Fund, managed on behalf of the Ministry of Health and Welfare, reached NT$904.3 billion in assets with a 26.98% yield. The Farmers’ Retirement Fund, managed for the Ministry of Agriculture, totaled NT$30.3 billion with a 36.96% return.

The Labor Fund Administration analyzed that despite significant volatility in June, Taiwan’s stock market closed up 3.11% for the month, crossing the 46,000-point threshold. While international developments and profit-taking pressures caused fluctuations, strong semiconductor and supply chain performance—driven by sustained AI demand—supported overall market resilience. Solid export performance and healthy fundamentals in the tech sector contributed to steady gains. Amid ongoing global financial market fluctuations influenced by U.S. monetary policy, geopolitical tensions, and AI industry dynamics, the Labor Fund maintained professional management, delivering stable long-term investment outcomes.

Over the long term, the Labor Fund and National Pension Fund have achieved average annual returns of 12.24% and 12.35% respectively over the past decade, and 15.85% and 15.62% over the past five years—demonstrating strong resilience and consistent performance.

Looking ahead, the Labor Fund Administration cited the International Monetary Fund’s World Economic Outlook report released on July 8, which revised the global economic growth forecast for 2024 down from 3.1% in April to 3.0%. The report noted that while Middle East conflicts have driven up energy prices and weakened market confidence, the AI investment boom continues to boost tech demand, helping sustain global economic resilience. However, escalating Middle East tensions and potential corrections in AI market expectations remain downside risks. The Labor Fund Administration will continue to closely monitor global political and economic developments to safeguard workers’ retirement assets.