EPF invests additional US$1.3b overseas

KUALA LUMPUR: The Employees Provident Fund (EPF)
increased its overseas investments by US$1.30bil in global real estate,
bonds and equities during the first quarter of 2013 (Q1 2013).
It said on Tuesday this was part of its diversification strategy to expand its overseas investments.
At the end of Q1, 2013, EPF total overseas exposure was 17.55% of its total investment cost. However, the Ministry of Finance allows the EPF to invest up to 23% of its investment assets in overseas market.
EPF chief executive officer Datuk Shahril Ridza Ridzuan said the fund's investment assets now exceeds half a trillion ringgit and continues to grow at an average of 8% to 9% yearly.
"The
constraints in the domestic market makes it imperative for us to find
suitable investments globally that fit our long-term diversification
programme. This will enable the fund to build a more balanced
investment portfolio in accordance with our risk appetite," he said.
As
at 31 March 2013, EPF's investment assets were RM536.55bil, up 9.86% or
an increase of RM48.16bil from RM488.39bil a year ago.
"Total
contributions received in Q1 2013 amounted to RM14.14bil compared with
RM8.54bil of total withdrawals resulting in RM5.60bil net inflows of
funds.
During the quarter under review, the EPF generated an investment income of RM5.60bil compared with RM7.74bil in Q1, 2012.
He said income in Q1 2012 was boosted by one-off gains that were not replicated in Q1 2013.
A lack of volume on the local Bursa Malaysia in the first quarter also contributed to the decline in earnings in Q1, 2013.