Article 4
The scope of utilization of the Fund shall be as follows:
1. Deposits in domestic or foreign financial institutions;
2. Loans to governments at various levels or state-owned enterprises for undertaking economic constructions or investment expenditures with compensation or allocation for repayment on a year-by-year basis;
3. Extensions to financial institutions for offering labor housing loans;
4. Investments in domestic or foreign listed, over-the-counter, or privately raised equity securities and their financial derivative products;
5. Investments in domestic or foreign listed, over-the-counter or privately raised debt securities and their financial derivative products;
6. Investments in publicly or privately raised beneficiary certificates issued by domestic securities investment trust funds or futures trust funds, mutual trust funds or collective trust products;
7. Investments in beneficiary certificates, fund stocks or investment unit securities issued or managed by foreign funds management institutions;
8. Investments in domestic/foreign current commodities and their financial derivative products;
9. Investments in domestic/foreign real estate, or the beneficiary certificates of real estate investment trust or assets trust and their financial derivative products;
10. Investments in other financial derivative products;
11. Engaging in securities lending;
12. Other utilization items beneficial to the return of the Fund approved by the competent authority.
If the utilization items referred to in the preceding subparagraphs involve mainland China or Hong Kong or Macao, the relevant statutes and regulations stipulated by the competent authority of finance and other relevant agencies shall be complied with.
For the assets allocation ratio of the utilization items referred to in Paragraph 1, the BLF shall prepare and submit an annual plan for investment/utilization to the competent authority for review and record.
In relation to the investment/utilization of the Fund, the BLF shall stipulate rules for relevant utilizations and transactions and processing procedures, and submit to the competent authority for review and record.
Investments in securities by the Fund shall comply with the following investment ratio restrictions:
1. Total cost for purchase of any single equity securities, debt securities or funds shall be no more than 5% of the net value of the Fund at the time of investment;
2. Total amount for the investment in any equity securities or debt securities shall be no more than 10% of the total issued amount of such securities at the time of investment;
3. Total amount for investment in any fund shall be no more than 10% of the issued and outstanding beneficiary units of such fund. Where the single domestic fund refers to an exchange traded fund (ETF), the total amount of the investment shall be no more than 20% of the issued and outstanding beneficiary units of such fund;
4. Investments in depositary receipts and the shares issued by the issuer of such depositary receipts held by the Fund shall be combined for the purpose of calculating the total amount or total number, and the ceiling of the investment ratio shall be calculated in accordance with subparagraph 1 and subparagraph 2. The number of depositary receipts shall be calculated on the basis of the number of shares represented by such depositary receipts.

Article 5
Investments in securities by the Fund shall comply with the following investment ratio restrictions:
1. Total cost for purchase of any single equity securities, debt securities or funds shall be no more than 5% of the net value of the Fund at the time of investment;
2. Total amount for the investment in any equity securities or debt securities shall be no more than 10% of the total issued amount of such securities at the time of investment;
3. Total amount for investment in any fund shall be no more than 10% of the issued and outstanding beneficiary units of such fund. Where the single domestic fund refers to an exchange traded fund (ETF), the total amount of the investment shall be no more than 20% of the issued and outstanding beneficiary units of such fund;
4. Investments in depositary receipts and the shares issued by the issuer of such depositary receipts held by the Fund shall be combined for the purpose of calculating the total amount or total number, and the ceiling of the investment ratio shall be calculated in accordance with subparagraph 1 and subparagraph 2. The number of depositary receipts shall be calculated on the basis of the number of shares represented by such depositary receipts.

Article 6
For engaging in financial derivatives transactions, it shall trade via a financial institution approved by the competent financial, securities, or futures authorities of the foreign countries, and the following requirements shall be observed:
1. Apart from principal guaranteed products, derivatives trading shall in principle not increase the Fund’s financial leverage.
2. In view of the needs to hedge NT dollar and foreign currency exchange rates when making foreign investments, the Fund may engage in foreign exchange derivatives transactions within the amount limits and scope of tools prescribed by the Central Bank of the Republic of China(Taiwan) in relevant regulations.
3. Engaging in non-foreign exchange derivatives transactions may be conducted within the scope of trading contracts floated, published, or listed by the competent authority of the country, exchanges, or over-the-counter markets.
The Bureau of Labor Funds shall determine limits, counterparties, and risk management measures when the Fund engages in derivatives transactions and shall request the approval of the competent authority.