The Employees Provident Fund (EPF) earns RM6.53 billion investment income in Q1 2011, a quarter-on-quarter growth of 19.76 per cent or RM1.08 billion compared to the corresponding quarter in 2010. The significant increase was primarily due to encouraging equity performance on the back of stronger corporate earnings and resilient economic fundamentals.
| Q1 2011 | Q1 2010 | Q-o-Q | 2009 | ||
| Jan-Mar | Jan-Mar | Growth | Jan-Dec | Q1 2011 | |
| RM ‘million | 3 mths | 3 mths | Rate | 12 mths | over 2009 |
| Malaysian Govt Securities |
1,348 |
1,277 |
6% |
4,466 |
30% |
| Loans & Bonds |
1,773 |
1,337 |
33% |
7,383 |
24% |
| Equities |
3,230 |
2,686 |
20% |
4,897 |
66% |
| Money Market Instruments |
153 |
134 |
15% |
432 |
35% |
| Property |
28 |
22 |
30% |
85 |
33% |
| EPF’s total income |
6,532 |
5,455 |
20% |
17,262 |
38% |
EPF Q1 2011 Quarterly Performance Indicators 2011 (Investment)
On q-o-q basis, total investment income increased by 20% to register RM6.53 billion in Q1 2011. Just Q1 2011 alone, EPF has achieved 38% of total investment income for the year 2009. It looks promising in surpassing 2009 full year results. Nevertheless, uncertainties in global economy recovery in 2011 may pose challenges to EPF in the remainder of 2011.
“Equity prices were further boosted by strong performance across all key sectors, primarily benefitting from higher global commodity prices, while construction-related stocks strengthened with the announcement of several major projects under the Government’s Economic Transformation Programme (ETP). The favourable trade volume had also facilitated EPF to capitalise on profit taking,” said EPF Chief Executive Officer Tan Sri Azlan Zainol when commenting on the unaudited Q1 2011 investment income results.
“With the global economy expected to experience uneven economic recovery and more moderate growth for the remainder of the year, EPF will continue to consolidate its investment efforts to ensure that members’ retirement savings are optimised. To this end, we will continue to be cautious and vigilant in our investments by maintaining a prudent and low-risk investment approach,” stated Tan Sri Azlan.
