Labor funds post returns of 28.46% in 1st half of 2026

Taipei, Aug. 3 (CNA) Labor funds administered by the Ministry of Labor's Bureau of Labor Funds reported a return of 28.46 percent in the first half of this year, driven by a boom in the global equity market during the current AI era, data released by the bureau showed Monday.

In a statement, the bureau said the accumulated gains in the value of assets in the funds' portfolios and income on investment totaled about NT$2.20 trillion (US$67.90 billion) from January to June, after these funds posted NT$77.1 billion in gains in June.

As of the end of June, the combined value of the funds managed by the bureau, including the Labor Pension Fund, the Labor Retirement Fund, the Labor Insurance Fund, and the Employment Insurance Fund, stood at NT$8.896 trillion, according to bureau data.

The six-month gains of NT$2.20 trillion translated into a rate of return of 28.46 percent during January-June, up from 27.7 percent during January-May, according to the bureau.

The bureau said the global equity markets posted initial losses in June amid escalating tensions in the Middle East, which pushed up crude oil prices, but then geopolitics improved to bolster market sentiment.

The bureau added that thanks to sound fundamentals, Taiwan's market continued to receive a boost from strong AI demand.

In the first six months of the year, the Taiex, the Taiwan Stock Exchange's benchmark index, soared 59.25 percent and the MSCI World Index rose 11.25 percent, while the Bloomberg Barclays Global Aggregate Bond Index dropped 0.21 percent.

The bureau said 54.37 percent of its investments were made overseas from January to June, while the remaining 45.63 percent were invested in the domestic market.

The labor funds managed by the bureau have various functions, mainly aimed at helping workers. In particular, the Labor Pension Fund, collects contributions from employers and employees every month and are managed by the bureau to boost the asset value, in a bid to help employees save and invest for their retirement.

The value of assets in the Labor Pension Fund, launched in 2015, totaled NT$5.796 trillion as of the end of June, the highest among all labor funds, and its rate of return for the January-June period stood at 28.19 percent, the bureau said.

The Labor Retirement Fund, which has been in place since 1984, had about NT$1.16 trillion in assets as of the end of June, with a rate of return of 40.74 percent for the six months, the bureau added.

Meanwhile, the Bureau of Public Service Pension Fund said on Monday that the Public Service Pension Fund, which the bureau manages, recorded NT$331.08 billion in gains in the six months, equal to a rate of return of 25.03 percent.