KUALA LUMPUR: The Employees Provident Fund has cautioned members against expecting significant changes in the dividend rate for 2005 despite it recording a 20.6% increase in investment income for the first half of this year.
EPF chief executive officer Datuk Azlan Zainol said that while the EPF was happy with the RM6.1bil investment income during the first half of the year, it would continue to be prudent in its investment for the second half of the year.
“The overall performance of each year is very dependent on that year's interest rate regime,” he said in a statement yesterday.
Azlan added that the continued growth of the domestic economy, supported by a steady equity market, was the reason for the improved performance in this year's first half.
The statement said that un-audited second quarter results for 2005 showed an investment income of RM3.2bil, up from RM2.9bil in the first quarter of this year.
It said income from equity, loans and bonds and property registered higher increases compared with the first half of 2004, and that from Malaysian Government Securities (MGS) and money market instruments showed marginal increases.
Equity recorded a 106.8% rise from RM563.6mil in the first half of 2004 to RM1.2bil in the first half of this year, while loans and bonds jumped 21% from RM1.7bil to RM2.1bil.
“For the first half of 2005, income from MGS was RM2.5bil while money market instruments contributed RM358.3mil, and property a further RM14.6mil,” he said.
As of June, the EPF had a total of RM248.6bil invested in various instruments, including MGS (38.1%), loans and bonds (33.5%), equity (19.4%), money market instruments (8.3%) and property (0.7%).