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2020 Operational Highlights

●  In accordance with the new public pension laws after the pension reform in 2017, the Supervisory Board periodically monitors the additional contributions by the Veterans Affairs Council and the pension savings from the reform, and reviews the Management Board’s proposal related to the adjustment of contribution rates in order to improve the funding status of the Fund.

●  In response to changes in domestic and international financial markets, the Supervisory Board reviewed the Management Board’s revisions of the following regulations regarding domestic investments in listed/OTC stocks, exchange-traded funds, mutual funds and bonds, and foreign investment in bonds, in order to enhance the operational efficiency of the Fund.

●  To maintain an objective mechanism of performance evaluation for the Fund, in addition to conducting monthly performance reviews, the Supervisory Board also carries out reviews quarterly and requires the Management Board to submit self-evaluation report with investment strategy if the Management Board’s performance doesn’t meet the evaluation standards of the Fund.

●  The Supervisory Board kept request the Management Board to present, at the Supervisory Board’s meeting, a series of in-depth review reports on critical issues related to improving the Fund's performance, such as the reset of investment strategy for fixed income, mutual fund and alternative investment, and the comparison with other government pension funds, as well as to tune up asset allocation tilted to higher profitability by adjusting the weight of capital gains from 51.34% to 60.17% at the end of 2019 and 2020, respectively. The Fund's concrete performance in 2020 was boosted accordingly after the above reviews and adjustments.

●  In light of the malpractice by other pension fund in Taiwan, the Supervisory Board prompted the Management Board to review its own mechanism of audit control and inspection on conflict of interest and step up measures to prevent such malpractice.

●  The Supervisory Board regularly produces weekly supervisory report to keep abreast of latest domestic and global financial markets and important political and economic developments, and issues ad hoc official letter to request the Management Board to address major financial event once it happened.

●  To improve the effectiveness of supervision over the Fund, the Supervisory Board had finished some internal studies in 2020, for example, The Research on Investment Strategy of Exchange Traded Fund for Pension Fund and The Research on Practical Asset Allocation by Pension Funds. The former focuses on the analyses of ETF by its types, characteristics, development, investment risks and strategies and the latter pays attention to the updated trend of asset allocation by top pension funds around the world.