EPF invests RM4.86b in small and medium-cap companies

PETALING JAYA: The Employees Provident Fund (EPF) has invested a total of RM4.86 billion in small and medium capitalised stocks in Malaysia through both its internal and external fund managers.
The equities portfolio remains the largest contributor to the retirement fund's income, which recorded an 8% increase from RM309.48 billion in 2016 to RM334.23 billion as at end December 2017, it said in a statement.
EPF said this affirms reports of the country's positive growth, and as indicated by the performance of the stock market index, FTSE Bursa Malaysia KLCI (FBM KLCI) last Thursday, which reached an all-time high in the country's economic history.
"As our funds continue to grow, we are constantly open to new investment opportunities that can provide income that are sustainable and long term," its CEO Datuk Shahril Ridza Ridzuan said.
"Our strong investment performance was largely driven by our investments in equities. We have been investing in stocks across various sectors, which include small and medium-cap companies," he added.
As at end 2017, Shahril said EPF has invested in 192 small and medium-cap companies and it is committed to find more good companies to add to its existing portfolio.
Shahril added that EPF would constantly monitor and assess the performance of the country's small and medium-cap companies to see if they are suitable for investment and fit the retirement fund's risk return profile.
He said among the qualities that the EPF would look for in such companies include good governance, cost structure and sound business performance.
"The EPF has been doing co-investments with the small and medium-cap companies to help their growth as we see future potential in them, which should also help to spur economic growth and boost EPF's investment income," he added.
In the recently tabled Annual Report 2017, EPF's total gross investment income as at Dec 31, 2017 was RM53.14 billion and total investment asset RM791.48 billion with return on investment (ROI) of 7.3%.