More than 70% Increase Compared to Same Quarter Last Year
The Employees Provident Fund (EPF) today announced an investment income of RM5.55 billion for the first quarter of 2010 (Q1 2010) which was recorded on the back of the recovering global economic and financial crisis.
Helped by firmer market conditions, this performance represented a 70.30 per cent increase over the RM3.26 billion posted in the corresponding quarter in 2009.
In a statement on its unaudited results for Q1 2010 issued today EPF Chief Executive Officer Tan Sri Azlan Zainol said, “Significant improvement in the year-on-year investment performance was a reflection of a more buoyant and favourable economic environment as Malaysia steers into making a full recovery from the global economic and financial crisis.”
However he cautioned, “While market conditions have improved compared to a year ago, the environment nevertheless remains volatile and we are cautious as the recovery of economies around the world is expected to take place at an uneven rate. This to a certain extent has had some impact on the overall performance of EPF’s investment returns in Q1 2010.”
Investment income in Q1 2010 was led significantly by Equities that contributed RM2.79 billion. Improved performance in Equities was mainly driven by the rise of share prices coupled with higher trade volume spurred by encouraging domestic economic growth, which led to opportunities for EPF’s equity managers to lock-in profit.
Loans and Bonds was the second largest contributor to the EPF’s investment income at RM1.55 billion. The amount however was 13.20 per cent lower than the RM1.78 billion recorded in the corresponding period in 2009. This was followed by Malaysian Government Securities which contributed RM1.07 billion in investment income, a marginal drop of 3.88 per cent compared to the corresponding period last year which recorded RM1.11 billion.
Meanwhile, investment income derived from Money Market Instruments and Properties improved by 3.75 per cent and 5.04 per cent compared to the same quarter in 2009, contributing RM124.92 million and RM21.67 million respectively.
With effect from January 2010, the EPF has adopted accounting standard FRS 139 (Financial Instruments; Recognition and Measurement). As at 31 March 2010, the EPF’s total accumulated fund stood at RM402.22 billion.
Going forward, Tan Sri Azlan said, “The EPF is significantly encouraged by the Malaysian economy’s robust growth of 10.10 per cent in the first quarter of 2010. Nonetheless, the outlook remains uncertain and particularly volatile, with markets in the second quarter of 2010 substantially affected by on-going credit concerns and worries about the general health of the world economy.”
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 organization, 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.
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