EPF Invested RM4.86 Billion In Small And Medium-Cap Companies
KUALA LUMPUR, 24 April 2018: The Employees Provident Fund (EPF) has invested a total of RM4.86 billion in small and medium capitalised stocks in Malaysia through both its internal and external fund managers. The Equities portfolio remains the largest contributor to the EPF’s income, which recorded an eight (8) per cent increase from RM309.48 billion in 2016 to RM334.23 billion as at end December 2017.
This affirms reports of the country’s positive growth, and as indicated by the performance of the stock market index, FTSE Bursa Malaysia KLCI (FBM KLCI) last Thursday, which reached an all-time high in the country’s economic history.
EPF Chief Executive Officer Datuk Shahril Ridza Ridzuan said, “As our funds continue to grow, we are constantly open to new investment opportunities that can provide income that are sustainable and long term.
“Our strong investment performance was largely driven by our investments in equities. We have been investing in stocks across various sectors, which include small and medium-cap companies. As at end 2017, we have invested in 192 small and medium-cap companies and we are committed to find more good companies to add to our existing portfolio.”
Datuk Shahril said the EPF would constantly monitor and assess the performance of the country’s small and medium-cap companies to see if they are suitable for investment and fit the retirement fund’s risk return profile. Among the qualities that the EPF would look for in such companies include good governance, cost structure and sound business performance.
“The EPF has been doing co-investments with the small and medium-cap companies to help their growth as we see future potential in them, which should also help to spur economic growth and boost EPF’s investment income.”
In the recently tabled EPF Annual Report 2017, the EPF’s total gross investment income as at 31 December 2017 was RM53.14 billion and total investment asset RM791.48 billion with return on investment (ROI) of 7.30 per cent.
About the Employees Provident Fund (EPF)
The Employees Provident Fund (EPF) is Malaysia’s premier retirement savings fund to help its members achieve adequate savings for a comfortable retirement. This is in line with EPF’s vision to help members achieve a better future and the mission to safeguard members’ savings and deliver excellent services. The EPF has evolved significantly from transaction-centric to a professional fund management organisation with a strong focus on retirement security. The EPF is guided by a robust and professional governance framework when making investment decisions. It continues to play a catalytic role in the nation’s economic growth and seeks to cultivate a savings and investment culture among its members to improve the country’s financial literacy level.