This is what normal EPF holders are concerned about.

And knowing them managment, they will do anything to make themslves look good.

10 years is not bad considering our IT

OOOOPppppppssss

EPF's 2Q investment income down 26% on year at RM8.44b



By Sangeetha Amarthalingam / theedgemarkets.com | September 9, 2016 : 2:12 PM MYT


KUALA LUMPUR (Sept 9): The Employees Provident Fund (EPF) posted a 26.04% drop in second quarter investment income at RM8.44 billion, from RM11.4 billion a year earlier, mainly on RM3.58 billion worth of non-cash impairments on its listed-equity investments.

In a statement today, EPF's chief executive officer Datuk Shahril Ridza Ridzuan said its investment income drop in the second quarter ended June 30, 2016 (2QFY16), reflected a challenging global and domestic environment.

"Since late last year, the EPF has been preparing itself for a challenging global and domestic environment. The uncertainty was made worse by developments such as Brexit and continued low commodity prices.


"We have seen and expect a further slowdown in global economies and increased volatility in equities. Markets saw lower valuations in share prices, particularly in the financial and oil and gas sectors, compared to the same quarter last year," Shahril Ridza said.

He said the RM3.58 billion worth of non-cash impairments reflected lower equity prices from a year earlier.

According to him, the EPF registered mark-to-market losses in its income statement.

"On a gross basis, the quarterly investment income in Q2, 2016 was RM12.07 billion, which was RM233.95 million higher, compared with RM11.83 billion recorded in Q2 2015. However, as a prudent fund, we continue to recognise mark-to-market losses on our income statement, while leaving gains on our balance sheet.

"This will ensure that our balance sheet remains healthy and allows us to take advantage of any market recovery. Impairments to present market values will allow us the opportunity to realise gains in the future," Shahril said.

This post has been edited by prophetjul: Sep 9 2016, 03:35 PM

40% and these people won't be able to retire.

retirement age will go up to 70 years young

Hmmmmmmmmmmmmmmmm

With the MYR shrinking, is it still good idea to keep so much of your retiremnet funds in MYR assets?

SGD at 1.96 is a long time ago!

EPF returns beat PM funds in last 5 years????? WoW!

We can never tell whether EPF has been instructed to carry out bailout service or not till shite happens.
eg MAS and Tajuddin Ramli case.

It's just diversification iMO

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.

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.

You are allowed to withdraw all your money at age 55

But you can withdraw your pre-55 monies anytime?

Has been quite fast since 15 years ago, since they computerised the systems.
i withdrew for housing and monies was credited like in 3 days

Just withdrew some money from my account last Friday.

Already in my account today.

That's pretty impressive!

i am qualified to withdraw everything sen in 3 months' time.

WHAT am i going to do with my millions from EPF?

HONESTLY i don't know!

i have properties, stocks but NO unit trust. i don't TRUST them.

At this age, i guess i will be investing in more dividend producing equities and maybe some bonds.

Need more ideas.

i am trying allocate portions. Not going to withdraw everything unless i migrate.

My goal is look for yields of the following:

a. min 6%
b. equity risk 2%
c. currency risk 1%
d. other risk 1%

Total 10%

So i try to look for anything above 10% if possible for riskier assets

Tabung Haji has made very poor investments in Oil and Gas. I think it's a pretty big chunk of their portfolio.

Maybe not like for like.