Page 61 - 國合會2016電子書-英文

Administration

Financial Management as long-term investment and lending projects. To
enhance the effectiveness of fund utilization, a portion
Affected by several unexpected major political and of the uncommitted Fund is set aside and invested in a
economic events, the global financial market experienced portfolio of financial instruments, including fixed-income
higher volatility this year than the previous years. Hence, instruments such as bonds, bank deposits and short-
financial planning in 2016 was focused on securing the term investments, and supplemented by risk-bearing
principal of investment and maintaining an abundant instruments such as exchange-traded funds (ETF).
liquidity of the fund. We adopted an active-defensive asset Annual earnings are derived from three main sources:
investment strategy to achieve stability and continuous interests and revenues from lending development
income through fixed-income instruments supplemented projects, revenues from long-term development
by risk-bearing instruments. investment projects, and income from investments in
Any financial investment plan not related to our main a portfolio of financial instruments. These are used
operations must be set with the priority to secure the to finance technical cooperation projects on a non-
funds needed by the TaiwanICDF for our foreign aid reimbursable basis and the TaiwanICDF’s operational
development projects. We adhered to the principle of expenses.
stable and steady asset allocation and controlled the risk- In 2016, the overall rate of return for the Fund was
bearing assets with a ceiling investment ratio, to make 2.01 percent excluding foreign exchange gains (losses)
good use of the capital to achieve a stable income from and other income (expenses), and 1.97 percent when
mid-to-long term fixed income investments. This income accounting for foreign exchange gains (losses) and
in turn supports foreign aid development projects on a other income (expenses). In addition, income from fixed-
non-reimbursable basis, ensuring the goal of sustainable income financial instruments was significantly affected
development of our operations. by continuous decline of domestic interest rate and
deferred U.S. interest rate hike.
Fund Utilization As interest rates fell globally, the TaiwanICDF had a
The TaiwanICDF’s overall fund balances (the Fund) are gain of NT$33.66 million through the disposal of ETF,
derived predominantly from two sources: the founding bringing annual income to NT$314.69 million. Taking
fund and donated fund; and accumulated earnings. foreign exchange gains (losses) and other income
The Fund is used for international cooperation and (expenses) into account, annual income comes to
development projects on a reimbursable basis, such approximately NT$378 million. Compared to that of

Figure 1 Fund Revenue (2013-2016)

(NT$10,000)
40,000 Lending and
35,000 Investment
7,311 8,384 Financial
30,000 Investments
74
25,000 （689） Exchange and
Other Gains (Losses)
20,000
15,472 20,824 18,112 19,700
15,000
10,000
5,000 11,235 9,964 10,925 11,769
0
2013 2014 2015 2016

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