Taiwan's Labor Funds Weather Market Storm, Reporting Losses in Q1

Global Market Volatility and Tariff Concerns Impact Bureau of Labor Funds Performance

Taipei, Taiwan - Facing significant market headwinds, Taiwan's Bureau of Labor Funds reported a loss of approximately NT$64.1 billion (US$2.06 billion) in the first quarter of this year. The bureau attributed the losses to global market volatility, particularly concerns surrounding tariff threats from the Trump administration.

The bureau revealed that a substantial loss of NT$171.6 billion was incurred in March alone, effectively erasing a profit of NT$107.5 billion accumulated during the first two months of the year. This resulted in a first-quarter return of minus 0.94 percent.

The performance of the Taiwan Stock Exchange (Taiex) reflected this market downturn, plunging 10.15 percent during the first quarter. The MSCI World Index also experienced a decline, dropping 1.32 percent during the same period.

The Bureau of Labor Funds has allocated its assets with 42.01 percent invested in domestic markets and 57.99 percent in overseas investments.

As of the end of March, the combined value of the funds managed by the bureau, encompassing the Labor Pension Fund, the Labor Retirement Fund, the Labor Insurance Fund, the Employment Insurance Fund, and the Arrear Wage Payment Fund, totaled around NT$7.24 trillion.

The New Labor Pension Fund, established in 2015 and the largest of the managed funds, held NT$4.79 trillion in assets at the end of March, with a return of minus 0.74 percent for the quarter.

The Labor Retirement Fund, in operation since 1984, held NT$1.08 trillion in assets as of the end of March, reporting a return of minus 1.88 percent during the first quarter.

The bureau stated that it is actively monitoring the impact of US tariff policies and rising inflation on market dynamics and will adjust its investment strategies to enhance returns.

The Bureau of Public Service Pension Fund also reported a loss of NT$25.09 billion in the first quarter of 2025, with a return of minus 2.48 percent.