I checked with EPF before, yes, dividend is calculated on daily basis.

Withdrawing AC 2 because of this FGV thing?

nope. for other purpose

stupid investment.

when they listed and raise more than
Myr2bil, think those crooks can tahan?

Buying all sorts of nonsense and poor management of their plantations says it all.

Very easy for them to make money in Msia,... Really easy, bros,.... Just one round like this, transfer of wealth from us to them already. And this is LEGAL some more....

Then for us, even if we are smart enough not to be fooled by them by investing into FGV, ultimately we are affected by our pension fund's involvement. So,... staying in Msia, there is NO WAY OUT ! Left or right,... they will 'makan' us also !

So,..

Malaysians working abroad are eligible to make contributions to the Employees Provident Fund (EPF) via the 1Malaysia Retirement Savings Scheme (SP1M).

Johor EPF branch Retirement Advisory Service (RAS) officer, Faizal Abu Al-Ashari said those below 55 years-old can register as EPF members to make savings until they reach retirement age.

http://www.thestar.com.my/news/nation/2016...tribute-to-epf/

Now, the question is, when EPF dump the shares, who picked it up?

Looks like it's Tabung Haji and KWAP, their respective holdings from bursa announcement is at 7.9% and 7.0% respectively

don't forget PNB & it's fund under management too

Just that the individual ASx funds are not considered substantial shareholder (hold <5%), the acquisitions and disposals are not required to be announced in Bursa and hence could not tell if they picked up FGV shares in the past months while EPF is dumping them

As per 2015 annual report, ASB holds more FGV shares than EPF in March 2016
http://www.bursamalaysia.com/market/listed...cements/5072077

EPF savings: Best investment for medical needs during old age
http://www.thesundaily.my/news/2111293

Is it correct to say that for a lazy investor, EPF is the best investment vehicle? Because:

- the dividend is quite good (so far), with a guaranteed rate of 2.5%
- you're getting 6k tax relief
- the returns are tax exempted
- you're getting free money from your employer (12%-16%, depending on where you work)

Basically, all you have to do is nothing (including not touching the money for 30 years), and you can easily get RM1mil+ when you retire (which is quite good for not doing anything), assuming that you have a modest income, and get around 3% increment annually.

Is that correct, or is there something I'm missing?

Yes, that's abt it,... you are right !

Only prb is the purchasing power of the EPF Currency is getting lower and lower as the years go by, and getting weaker compared to the rest of the currencies in the world. The guaranteed rate of 2.5% is not enough anymore to beat real inflation.

I am playing devil's advocate

1. the dividend is quite good (so far), with a guaranteed rate of 2.5%

Good in the sense that it is guaranteed by the government (low risk). Bad if you compared to other government guaranteed funds like ASB. And if you willing to take higher risk, then there are better investment returns elsewhere (some 10+% depending on your investment acumen)

2.you're getting 6k tax relief

You can get the same 6k relief with insurance.

3. the returns are tax exempted

Returns from capital gain is also tax exempt. Dividends from stock is also 1 tier dividend which has no more tax in the hands of stock holder

4. you're getting free money from your employer (12%-16%, depending on where you work)

Look at it another way, it is the money which your employer can't pay you because they have to contribute their share to your EPF account. It is imputed in your net salary


Other negatives of EPF :

1. It is in RM, which in 2015 and 2016 has depreciated from 3.0 to 4.5 in USD terms. That is 50% depreciation which takes 8+ years of 6% dividend. In another words, 8 years of dividend gone to the drain in USD terms

2. It is money you can't use until 55 y/o. No flexibility

3. Money is lent to government and GLC. You heard the news of how they spend money ?

4. How safe is the guarantee from the government ?

5. If really EPF payout is only 2.5%, it is a bad investment. I think even 4% like FD, everybody will jump and complain. And it might happen very soon

Yes, spot on.
And it makes me so furious to see this happening to MY money, which I have absolutely no control of.
So, every 3 months, I have been regularly withdrawing my EPF money out to do personal investment by buying funds, just to try and diversify and spread the risk.
Not the perfect solution, but it's better than nothing.

Yes,... this is the right thing to do ! Take out and invest by yourself. But then, of course, you must learn well first, and not to simply lose yr money to the mkt !!

EPF not to be blamed for leaving FGV
BY M. SHANMUGAM


THAT the Employees Provident Fund (EPF) does not have any stake in Felda Global Ventures Bhd (FGV) is certainly something that could not have gone down well with some quarters in Putrajaya.

But for those who have been in awe of the EPF’s splendid track record in declaring handsome dividends year after year, against the trend of the global capital markets, the news comes as no surprise. The writing was already on the wall more than two years ago that FGV was not a stock that fitted EPF’s investment criteria.

When the FGV was listed in 2012, the EPF was the third largest shareholder of the plantation company with 7.95%. The FGV was sitting on a cash pile of more than RM5bil and its business model was pretty straight forward – which is to collect the fresh fruit bunches and process them into crude palm oil.

The risk was minimal for the EPF. As long as FGV keeps cutting its production cost and utilises its huge cash pile for re-planting activities there is very little to fear.

FGV has the biggest plantation hectarage in the world. However, the shortcoming was that the age profile of its palm trees was old. Hence the need for some intense re-planting activities.

The common view that institutional investors take was that the huge cash pile would serve the company as a buffer when replanting takes place. Once replanting is completed, there would be a five-year period of lull before the trees start to bear fruits. From the sixth year, the trees will yield for the next 20 years with minimum maintenance.

On that score, five years ago the FGV, a company with a RM5bil cash pile then, huge hectarage of oil palm and of importance to the government as it influenced more than 50 parliamentary seats, was a good investment.

However even then, there were some nagging issues especially when it came to some corporate governance practices.

For starters, FGV chairman Tan Sri Mohd Isa Samad is also the chairman of Federal Land Development Authority (Felda) which is the major shareholder of the listed company. Isa, who is also a politician closely aligned to Putrajaya, also sits on board of many subsidiaries.

The EPF generally likes to see a clear line separating the board and the management. It also tends to shy away from companies that have active politicians playing a major role in the company.

Isa is a non-independent and non-executive chairman of FGV. But his remuneration package suggests that he plays a major role in the company. According to the latest annual report, Isa’s total package is RM1.8mil.

In comparison, Tan Sri Ghani Othman, a retired politician who is the chairman of Sime Darby Bhd, gets just below RM950,000 per annum. Isa’s package is double that of Ghani and is not far off from the remuneration of FGV president and chief executive officer (CEO) which came up to RM2.28mil.

If Isa was not playing a big role in FGV, it certainly does not warrant a RM1.8mil remuneration package.

There is nothing wrong with active politicians sitting on the board of companies.

However, for the FGV, which is already a political hot potato, it only makes it difficult to appease investors if the board is headed by an active politician. Controversial decisions that the board make would always be viewed sceptically.

Like all its investment companies, the EPF would have certainly voiced its concerns over FGV’s board composition. Unfortunately, nothing has changed in the composition of the board since the day the company was listed.

Then came the dwindling cash pile, which has nothing to do with the current president and chief executive officer Datuk Zakaria Arshad, who replaced Datuk Emir Mavani nine months ago. During Emir’s tenure, which started from Jan 1, 2013, FGV completed seven acquisitions forking out RM4bil.

Apart from plantations, the company had also acquired property assets, including three apartments in the vicinity of the KLCC.

The straw that broke the camel’s back for many institution funds such as EPF was when FGV proposed to acquire a block in Eagle High Plantations from Indonesia’s Rajawali Group in June 2015. One of the first things Zakaria did when he assumed the top position was to state clearly that FGV would not proceed with the deal.

Although FGV has terminated the Eagle High deal, which is now being carried out by its major shareholder Felda, the damage was already done.

The EPF ceased to be a substantial shareholder of FGV, meaning it held less than 5%, in June 2015. Over the last one year the provident fund has gradually sold its stake and three weeks ago declared that it no longer has any interest in FGV.

Although the EPF has lost on this investment but overall it has gained from many other investments because of its strict policy of putting money into companies that adhere to high standards of corporate governance. Like other funds, its performance is based on a portfolio of investments.

Anyway, EPF’s handsome annual dividend payout speaks for itself.

In the high world of finance where it calls for crisp and sharp decision-making, strong boards and management are key criteria for the long-term growth of companies. It is an enticing factor for investors.

In FGV’s case, what comes as a surprise is that while the EPF has sold down its stake, Retirement Fund Inc and Lembaga Tabung Haji are maintaining their respective interest at 7.07% and 7.872%.

However, between the three funds, the EPF has proven itself time and again with its shrewd investment strategy.

Thumbs up!!! That's what we want from EPF. Good governance and excellent administration from EPF to protect their contributors from a bad deal. Good job EPF!!

At age of 60, we can withdraw all out from EPF.
What if we did not withdraw all from EPF at age 60?
1. From there forward, will EPF still pays us yearly dividend?
2. If I decided to withdraw at age 61, can I do so? If yes, whats the amount can i withdraw out at age 61, 62, etc... ?

Best is to drop in at EPF office and fire all your questions at them. Ha.

Don't worry as EPF will still pays yearly dividend..

The second one, I don't know.

while waiting for responses, you can read this if you want....
hope it can provides some understanding....
http://www.kwsp.gov.my/portal/documents/10...BM_01012017.pdf