EPF records RM203.18mil realised loss from Felda Global Ventures stake

KUALA LUMPUR: The Employees Provident Fund (EPF) recorded a realised loss of RM203.18mil from its investment in Felda Global Ventures Holdings Bhd (FGV) as at August last year.

In a written reply to Dr Ko Chung Sen (DAP-Kampar), the Finance Ministry said, however, that EPF had gained a dividend income of RM105.77mil.

In explaining the fund’s strategy, the ministry said that EPF has always had a strict investment policy where the companies in which it has an interest to invest should be “fundamentally strong”.

The ministry added that companies with weak financial performance would still be given consideration if they could recover within a short period.

It also said that EPF will reduce or completely sell off its shares in companies that show a continued decline in financial performance as well as weak management.

EPF had initially held a 4.5% stake in FGV, before increasing it to 8.49% in September 2013 following “encouraging financial performance”.

FGV - which is the world’s largest producer of crude palm oil - was first listed on the Kuala Lumpur Stock Exchange in 2012.

It initially traded at RM4.55 a share, but hit a record low of RM1.19 in August 2015.

Besides EPF, other government institutions that have invested in FGV are the Tabung Haji pilgrimage fund and Retirement Fund, Inc (KWAP).

The ministry said both institutions are closely monitoring FGV’s performance to ensure that they will earn substantial profits from their investment.