EPF’s 3Q investment income up 53%

KUALA LUMPUR: The Employees Provident Fund’s (EPF) investment income for the third quarter ended Sept 30, 2009 (3Q09) jumped 52.71% to RM5.5 billion from RM3.6 billion in the same quarter last year, riding on equities, loans and bonds.

According to a statement yesterday, EPF said on a quarter-on-quarter (q-o-q) basis, its investment income rose 14.51% from RM4.8 billion generated in the previous quarter (2Q09).

The pension fund said equities continued to contribute significantly to its investment income, growing 34.67% to RM2.34 billion in 3Q09 from RM1.74 billion in 2Q09.

EPF said loans and bonds were another major contributor to its investment income, increasing to RM1.89 billion in 3Q09 versus RM1.81 billion in the previous quarter, thanks to confidence in Malaysia’s corporate bond market and in line with the pension fund’s low risk policy of only investing in high-grade companies with AAA or AA credit ratings.

It said investments in Malaysian Government Securities recorded an income of RM1.14 billion in 3Q09, up 2.54% from RM1.11 billion in 2Q09. Income from PROPERTIES [] also moved up 2.69% q-o-q to RM21.37 million from RM20.81 million.

However, EPF noted that income from money market instruments declined 7.38% to RM87.31 million in 3Q09 from RM94.27 million in the previous quarter.

EPF added that its total fund size currently stood at RM361.09 billion as compared with RM353.93 billion in 2Q09.

Its chief executive officer Tan Sri Azlan Zainol said the continued rally in the stock market helped boost EPF’s investment income for the quarter, stressing that members could expect a higher dividend for 2009, provided the market recovery continued with no unforeseen disruptions till year-end.

“As the custodian of more than 12 million members’ retirement savings, the overall performance of EPF’s investment portfolios will continue to be strictly guided by measures devoted to safeguarding their interest while pursuing better returns for members’ retirement well-being,” he said.