Mixed results for EPF Investment Scheme
As of 30 June 2003, EPF has appointed 19 asset management companies. Funds managed by the asset management companies are divided into three categories: Full Discretionary, Semi Discretionary and Non Discretionary.
The quantum of withdrawal for investment in the asset management companies has been relatively small to date compared to unit trusts. As at 30 June 2003, the total amount withdrawn was RM227.95 million, as against RM5.7 billion for unit trusts.
Performance evaluation for the period of July 1, 2002 to June 30, 2003 for the Full Discretionary category showed a positive return with median of 2.2 per cent. This is better than the KLSE CI (with dividend) of - 2.0 per cent over the same period. However, the Semi Discretionary category under performed the benchmark with a median return of - 2.7 per cent.
In the five years period, median return for Full Discretionary, Semi Discretionary and Non Discretionary are - 2.9%, 10.8% and 9.3% respectively in comparison with the KLSE CI (with dividend) of 11.4 %.
Given the above figures, members have to be aware of the risk-return trade-off in investing in these alternative investments and therefore have to take responsibilities in deciding how best to manage their savings.
The EPF would like to advise members that they should not only buy at the right time but also monitor their investments. This would enable them to gauge the market outlook and also sell their investments at the right time to gain good returns on investments.
(DR ROSLAN A. GHAFFAR)
Deputy Chief Executive Officer (Investments)
Employees Provident Fund
Date: 10 September 2003
source: http://www.kwsp.gov.my/index.php?ch=81&pg=132&ac=1509