Business Times
THE Employees Provident Fund (EPF) said its investment income surged by 38.6 per cent to RM9.8 billion in the first half of the year.
Its unaudited first half results revealed that income from equities recorded a 141 per cent jump to RM4 billion, accounting for 40.8 per cent of the fund's generated income.
"The returns from our equities portfolio have been very encouraging, reflecting great improvement in our investment management of the equities market, which has been further strengthened by the buoyant stock market," EPF chief executive officer Datuk Azlan Zainol said in a statement.
Azlan said EPF will however remain cautious as investments in equities pose relatively higher risks over most other instruments.
He said this is especially so in the wake of the weakened financial markets triggered by the subprime mortgage lending crisis in the United States, which is expected to slow down the equities market in the second half of 2007.
A total of RM58.6 billion was invested in the equities market in the first half of the year, with focus largely on the trade and services (41.9 per cent), financial (26 per cent) and plantation (9.7 per cent) sectors.
Investments of less than 10 per cent were made in sectors such as consumer and industrial products, construction, property, technology, infrastructure, REITS, Mesdaq and the second board.
Azlan said during the first six months, 71.8 per cent of its funds was invested in low-risk fixed income instruments such as Malaysian Government Securities (MGS) of various maturity dates, loans and bonds.
Income derived from money market instruments improved 79.7 per cent to RM592.4 million.
Loans and bonds contributed RM2.8 billion to the fund's income, and revenue from investments in MGS and property accounted for RM2.4 billion and RM23.3 million respectively.
Total accumulated investments also strengthened by 10.7 per cent to RM301.4 billion.
THE Employees Provident Fund (EPF) said its investment income surged by 38.6 per cent to RM9.8 billion in the first half of the year.Its unaudited first half results revealed that income from equities recorded a 141 per cent jump to RM4 billion, accounting for 40.8 per cent of the fund's generated income.
"The returns from our equities portfolio have been very encouraging, reflecting great improvement in our investment management of the equities market, which has been further strengthened by the buoyant stock market," EPF chief executive officer Datuk Azlan Zainol said in a statement.
Azlan said EPF will however remain cautious as investments in equities pose relatively higher risks over most other instruments.
He said this is especially so in the wake of the weakened financial markets triggered by the subprime mortgage lending crisis in the United States, which is expected to slow down the equities market in the second half of 2007.
A total of RM58.6 billion was invested in the equities market in the first half of the year, with focus largely on the trade and services (41.9 per cent), financial (26 per cent) and plantation (9.7 per cent) sectors.
Investments of less than 10 per cent were made in sectors such as consumer and industrial products, construction, property, technology, infrastructure, REITS, Mesdaq and the second board.
Azlan said during the first six months, 71.8 per cent of its funds was invested in low-risk fixed income instruments such as Malaysian Government Securities (MGS) of various maturity dates, loans and bonds.
Income derived from money market instruments improved 79.7 per cent to RM592.4 million.
Loans and bonds contributed RM2.8 billion to the fund's income, and revenue from investments in MGS and property accounted for RM2.4 billion and RM23.3 million respectively.
Total accumulated investments also strengthened by 10.7 per cent to RM301.4 billion.
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