U.S. tariffs lead to financial setback in the initial quarter
Funds managed by the Bureau of Labor Funds faced a whopping NT$64.1 billion loss in Q1 2025, thanks to a rollercoaster ride in the global markets, and it ain't just a short-term rollercoaster either, pal!
The bureau spilled the beans, claiming that March alone snatched a profit of NT$107.5 billion made in the first two months, leaving a dismal NT$64.1 billion deficit for the quarter. That's a meager -0.94% return, for cryin' out loud!
Now, you might be wonderin' what's shakin' up the global markets, right? Well, turns out it's none other than the good ol' tariff threats from the Trump administration, causing a storm in the market world.
Amidst the uncertainty on US tariffs, Таивіа'n stock market, or TAIEX, plummeted by a whopping 10.15% in the first quarter, while the MSCI All Country World Index took a small step backward, dipping 1.32%.
You might be wonderin' where the Bureau of Labor Funds is investin' all that moolah, right? Well, accurately as a Swiss watch, they've got approximately 42.01% invested in domestic markets, while the rest, a whopping 57.99%, is stacked overseas.
And there's a whole lotta funds stacked up! The combined value of the funds managed by the Bureau of Labor Funds, namely the Labor Pension Fund, the Labor Retirement Fund, the Labor Insurance Fund, the Employment Insurance Fund, and the Arrear Wage Payment Fund, totaled a hefty NT$7.24 trillion at the end of March.
Now, the Labor Pension Fund, launched in 2015, is the big dog in this pack, boasting NT$4.79 trillion as of March. But even this powerhouse suffered a defeat, recording a minus-0.74% return in Q1 2025. Chances are, these tariff threats ain't helpin' much neither.
On the other hand, the Labor Retirement Fund, which has been around since 1984, held NT$1.08 trillion in assets at the end of March, endurin' a minus-1.88% return in the first quarter.
As they say, it's a marathon, not a sprint. The bureau plans to keep a close eye on the impact of US tariff policies and escalatin' inflation on the markets, and they aim to adjust their investment strategies like a damn ninja, to boost returns and keep those funds fat and happy!
Finally, it's worth mentionin' that the Public Service Pension Fund, managed by the Bureau of Public Service Pension Fund, also reported a loss of NT$25.09 billion in Q1 2025, with a return of minus-2.48%. But that's another story for another day!
The Bureau of Labor Funds has a significant portion of its investments in overseas markets, with 57.99% allocated there. The combined value of the funds managed by the Bureau totals NT$7.24 trillion. Despite the domestic Labor Pension Fund, launched in 2015, holding NT$4.79 trillion, it suffered a minus-0.74% return in Q1 2025, possibly due to the uncertainties brought about by US tariff threats. Furthermore, personal finance and wealth management strategies will be crucial for individuals navigating the volatile global finance and business environments, as the rollercoaster ride in the markets might continue.
