Flash EPF generates investment income of RM5.5b in 3Q

KUALA LUMPUR: The Employees Provident Fund (EPF) generated investment income of RM5.50 billion in the third quarter of 2009, up RM696.32 million or 14.51% above the RM4.80 billion in the second quarter.

The EPF said on Thursday, Dec 3 that on a year-over-year basis, 3Q investment income rose by 52.71% from RM3.60 billion a year ago.


Equities continued to contribute significantly to the EPF’s investment income, growing 34.67 per cent from RM1.74 billion earned in Q2 2009 to RM2.34 billion in Q3 2009.

“The continued rally in the stock market has helped to boost EPF investment income for the quarter. Provided that market recovery continues with no unforeseen disruptions till the year end, members can expect a higher dividend for 2009 compared to that of the previous year,” said EPF chief executive officer Tan Sri Azlan Zainol.

The EPF said loans and bonds' contribution increased 4.07% to RM1.89 billion from RM1.81 billion in 2Q. This was due to the regaining momentum and confidence in Malaysia’s corporate bond market, and in line with the EPF’s low risk policy to invest only in high-grade companies with credit ratings of AAA or AA.

It recorded an income of RM1.14 billion from investments in Malaysian Government Securities, up 2.54% from RM1.11 billion in 2Q.

Income from PROPERTIES [] rose 2.69% to contribute RM21.37 million for 3Q from RM20.81 million in 2Q.

However, returns generated from money market instruments declined 7.38% to RM87.31 million in 3Q from RM94.27 million in 2Q.

The EPF’s total fund size is RM361.09 billion compared with RM353.93 billion in 2Q.