EPF investment performance y.e. 31.12.05

Since Employees Provident Fund (EPF) contributors have a choice whether to leave their money to accumulate with the EPF or to withdraw the money for investment in mutual funds, I feel it’s really important to keep track of the returns given by the EPF.

The Star (18 July 2006) reported that the EPF’s gross income rose by 11.7% to RM13.2bil, and asset size by 9.8% to RM263.8bil, for the financial year ended Dec 31.   I visited the EPF’s website and was able to have a look at the 2005 Annual Report. It gives the EPF’s  investments as at 31 December 2005 as follows:

Value (RM Million)

%

MGS

97,768

37.6%

Loans & Bonds

94,347

36.3%

Equity

49,602

19.1%

Money Market Instruments

16,577

6.4%

Property

1,591

0.6%

TOTAL

259,885

100.0%

The bulk of its investments is in fixed-income securities such as Malaysian Government Securities and Loans/Bonds, whereas 19% of its investments comprise of equities. The return on investment for each asset class were reported as follows:

1. MGS –  5.39%
2. Loans & Bonds- 5.43%
3. Equity 6.18%
4. Money Market Instruments – 3.88%
5. Property – 2.19%
6. Total 5.42% 

Although the returns on the Equity category has increased from 5.61% in 2004, I personally find this to be disappointing still. To give a better idea of what equities the EPF invests in, a list of its Top 30 equity investments and the % of total shareholdings is also published in the Annual Report.

This list is extracted below:

1. Malaysian Building Society Bhd 63.02% 
2. Rashid Hussain Bhd 30.90%
3. Malaysian Resources Corporation Bhd 30.69%
4. Cycle & Carriage Bintang Bhd 20.62%
5. Bumiputra-Commerce Holdings Bhd 19.50%
6. Globetronics Technology Bhd 18.21%
7. ACP Industries Bhd 14.59%
8. JT International Bhd 13.75%
9. Melewar Industrial Group Bhd 13.22%
10. Sime Darby Bhd 14.54%
11. Petronas Gas Bhd 13.76%
12. KFC Holdings Bhd 14.27%
13. Telekom (M) Bhd 13.93%
14. New Straits Times Press Bhd 18.64%
15. Oriental Holdings Bhd 12.86%
16. Ammb Holdings Bhd 16.23%
17. Chemical Co. Of Malaysia Bhd 12.18%
18. Amway (M) Holdings Bhd 12.72%
19. Edaran Otomobil Nasional Bhd 12.00%
20. Kian Joo Can Factory Bhd 12.25%
21. Drb Hicom Bhd 15.56%
22. Land & General Bhd 11.46%
23. Dialog Group Bhd 11.85%
24. AIC Corporation Bhd 11.24%
25. Media Prima Bhd 12.67%
26. Malaysian Airlines Systems Bhd 11.93%
27. Proton Holdings Bhd 11.63%
28. IJM Corporation Bhd 14.51%
29. United Plantations Bhd 10.28%
30. Ta Ann Holdings Bhd 11.10%

Other bits of statistic reported include:Total contributions collected by the EPF in 2005 rose 11.5% to RM24.4bil, up from RM21.9bil in 2004 

Membership increased by 3.5% to 11.1 million members, with 5.23 million being actively contributing members

The fund has declared a higher dividend rate of 5% for 2005 compared with 4.75% for 2004

More info is available from the EPF website: http://www.kwsp.gov.my/index.php?ch=91&pg=572&ac=7306