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2018 Prospect

●Effective use of different investment vehicles in various market environments to enhance performance

As global financial markets are fluctuating more than ever before and thus make it more difficult to invest, the Supervisory Board has continued to urge the Management Board to rebalance its asset allocation in response to market changes and to use the various investment vehicles in a flexible way so as to enhance the efficiency of fund utilization.

●Effectiveness of the Fund ‘s internal control process and improvement of the auditing

Ensuring that the Management Board carries out effective internal controls is a priority for safeguarding the Fund’s operational security. Make sure its compliance with regulations and operating procedures by way of on-site or paper audits so as to step up control and prevent Fund mismanagement.

● Prudent assessment of investment risks and flexible adjustment to asset allocation

The Management Board will closely watch changes in international and domestic financial markets and assess market risk appetites so as to construct optimal portfolios. In addition, the Board will continue to strengthen risk management mechanism to rigorously evaluate the risks and returns of each investment target and so enhance long-term steady income

● Timely revision of relevant regulations in response to practical needs

Given the fast-changing financial landscape, regulations should be regularly reviewed and revised in order to better respond to practical needs. This will also contribute to the sound management of the Fund and a smooth annual planning of asset allocation.

●Addition of new investment instruments to take advantage of market opportunities

With the introduction of new financial products, the Management Board will continue to assess the feasibility of adding new tools and discretionary management accounts. It is hoped that by diversifying mandate types and investment areas, both the depth and breadth of investments can be enhanced and that effective diversification of the Fund’s overall risks will contribute to higher performance.

●Enhancement of audit efficiency to ensure the proper functioning of the internal audit

Current audit procedures will be reviewed and amended as necessary with the addition of new investment instruments and the revision of investment restrictions, and job training will also be upgraded to ensure comprehensive regulatory compliance and asset security. In addition, communication with the Financial Supervisory Commission’s information reporting system will continue to be strengthened so as to reinforce the control measures and functions of discretionary management.

The pension system is an important link in the reform of the civil service system. The management quality of the Fund is closely associated with the rights and interests of retirees from the military, civil service and public schools. The staff members of the PSPFMB and the PSPFSB have the obligation to make active efforts and devote themselves to maximize their functions as prudent managers. Apart from responding to global economic developments and making timely adjustments to investment strategies, they must also enhance the performance of discretionary management to pursue long-term stable investment performance to achieve the goal of sustainable management.