EPF invests RM4.86bil in small, mid cap stocks

Shahril: Most people are focused on corporate results. Political events or news tend to have short-term effects on markets."

PETALING JAYA: The Employees Provident Fund (EPF) has invested RM4.86bil in small and medium-capitalised stocks in Malaysia and is committed to finding more good companies to add to its current portfolio.

Chief executive officer Datuk Shahril Ridza Ridzuan said in a statement that as at end-2017, the EPF had invested in 192 small and medium-cap companies.

The investments were executed via its internal and external fund managers.

The equities portfolio remains the largest contributor to the EPF’s income, which recorded an 8% increase from RM309.48bil in 2016 to RM334.23bil as at end-December 2017.

This affirmed reports of the country’s positive growth as indicated by the performance of the FBM KLCI on April 19, which reached an all-time high of 1,895.18 points.

Shahril said: “As our funds continue to grow, we are constantly open to new investment opportunities that can provide income that is sustainable and long term.

“Our strong investment performance was largely driven by our investments in equities. We have been investing in stocks across various sectors including small and medium cap companies.”

Shahril said the EPF would constantly monitor and assess the performance of the country’s small and medium cap companies to see if they were suitable for investment and fit the retirement fund’s risk return profile.

“Among the qualities the EPF would look for in such companies are 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 the EPF’s investment income.”

In the EPF Annual Report 2017, its total gross investment income as at Dec 31 was RM53.14bil and total investment asset RM791.48bil, with a return on investment of 7.3%.