Thursday, September 23, 2010

EPF Investment Income Up 23% To RM5.93 Billion In Q2 2010

Source: http://www.kwsp.gov.my/index.php?ch=p2news&pg=en_p2news_press&ac=3353

Increase Led by Contributions from Equities and Loans & Bonds.
The Employees Provident Fund (EPF) today announced an investment income of RM5.93 billion for the second quarter of 2010 (Q2 2010) on the back of Malaysia’s robust economic growth in the first half of the year.
In a statement issued today on its unaudited results for Q2 2010, the EPF reported that the figure represents an increase of 23.47 per cent from RM4.80 billion registered in the corresponding quarter in 2009 (Q2 2009).
Commenting on the results, EPF Chief Executive Officer Tan Sri Azlan Zainol said, “This increase in performance was primarily encouraged by improvements in both domestic and global equity markets and supported by the higher interest rates compared to the previous corresponding period.”
Investment income in Q2 2010 was led significantly by Equities that contributed RM2.72 billion or a 56.55 per cent increase in returns compared to RM1.74 billion recorded in the corresponding period in 2009.
Loans and Bonds was the second largest contributor to the EPF’s investment income at RM1.90 billion. This represented a 4.72 per cent increase over the RM1.81 billion recorded in the corresponding period in 2009. This positive performance was down to new additional investments being made as well as the increase in interest rates during the period under review.
Investments in Malaysian Government Securities meanwhile, contributed an income of RM1.10 billion in Q2 2010, declining 1.02 per cent lower compared to the RM1.11 billion recorded in the corresponding quarter in 2009.
Investment income derived from Money Market Instruments however, recorded the most significant increase at 94.23 per cent to contribute RM183.10 million over RM94.27 million posted in Q2 2009, attributable to the higher asset holdings and the raising of interest rates. EPF’s income derived from Properties also rose 9.37 per cent compared to the same quarter in 2009, contributing RM22.76 million.
As at 30 June 2010, the EPF’s total asset allocation is as follows:

Types of Investments
RM Billion
Asset Allocation (%)
Malaysian Government Securities
94.82
23.32
Loans and Bonds
151.57
37.28
Equities
130.94
32.21
Money Market Instruments
27.61
6.79
Property
1.61
0.40
Total
406.55
100

Going forward, Tan Sri Azlan said, “Although we have performed well in the first half of the year, we are cautious over the outlook in the second half. Nonetheless we will continuously seek to optimise returns and add value to members’ retirement.”
About the Employees Provident Fund (EPF)
The Employees Provident Fund (EPF) is Malaysia’s premier pension fund, providing basic financial security for retirement. The Fund is committed to preserving and growing the savings of its members in accordance with best practices in investment and corporate governance. It will always be guided by prudence in its investment decisions.
As a customer-focused organisation, the EPF delivers efficient and reliable services for the convenience of its members and registered employers.
The EPF continues to play a catalytic role in the nation’s economic growth, consistent with its position as a leading savings institution in Malaysia.

Date: 7 September 2010