online casino bluebook - online casino gambling guide, to top ranked online casinos and reviews of over 200 gambling related websites. www.onlinecasinobluebook.com also host a casino forum, blog, and casino news articles
THE Employees Provident Fund (EPF), a pension fund, said its third quarter investment income fell 60 per cent from the second quarter as it set aside more money to cover the lower value of its stock market investments.
Its investment income was RM2.06 billion.
"In line with accounting best practices and as a conservative provisioning policy, the EPF made allowances amounting to RM2.29 billion for diminution in value of equity investments due to deterioration in market value," said the pension fund in a statement yesterday.
The benchmark Kuala Lumpur Composite Index has fallen over 41 per cent so far this year, on concerns of lower corporate profits as the economy slows.
The market fell 14 per cent in the third quarter alone.
"The outlook in the fourth quarter is likely to reflect the full-scale impact of the global meltdown, although there is still hope for the Malaysian equity market to bounce back," chief executive officer Datuk Azlan Zainol said in a statement.
Although income from equities fell by about half to RM1.26 billion, returns from loans and bonds improved.
Investments in Malaysian Government Securities (MGS) posted a return of RM1.21 billion, an improvement of 1.4 per cent against second quarter this year.
"EPF has maintained its MGS investments despite the bond market's recent selloff caused by concerns of inflationary trends triggered by rising transport and energy prices.
"MGS is still a low-risk investment and we will stick to such investments in the best interest of our members," said Azlan.
About 70.7 per cent of its total assets are in bonds and loans.
Thursday December 4, 2008 EPF Q3 income dips 60%
By YVONNE TAN
PETALING JAYA: The Employees Provident Fund’s (EPF) total investment income for the third quarter (Q3) fell 60.4% to RM2.06bil from RM5.2bil in the previous quarter (Q2) as its investments, especially equities, were affected by the global economic uncertainty.
The EPF said in a statement yesterday income from equities in the June to September period fell by more than half to RM1.26bil from RM2.54bil in the preceding quarter.
In line with accounting best practices and as a conservative provisioning policy, the EPF also made allowances amounting to RM2.29bil for diminution in the value of equity investments due to the deterioration in market value compared with RM416.7mil in Q2.
“The outlook in the fourth quarter is likely to reflect the full-scale impact of the global meltdown, although there is still hope for the Malaysian equity market to bounce back,” chief executive officer Datuk Azlan Zainol said yesterday.
Azlan believed Malaysia’s competitive edge would help sustain the economy during these difficult times.
The EPF said due to the current global economic uncertainty, stock markets across the globe had fallen significantly, including the local equity market.
Bursa Malaysia’s market capitalisation during Q3 shrank by about RM200bil to RM770bil.
In the same period, the KL Composite Index fell 243.81 points, or 19.3%, to 1,018.68.
On the investment income of RM2.06bil in Q3, the EPF said it was predominantly driven by Malaysian government securities (MGS) and loans and bonds.
In the quarter under review, the EPF received 3.1% higher returns from loans and bonds, raising income to RM1.71bil which was an increase of 3.14% or RM52.05mil from Q2’s RM1.66bil.
Its investment income in MGS rose 1.38% to RM1.217bil against the preceding quarter’s RM1.2bil.
EPF said the most of Q3 investments were in the trade and services sector and the finance sector comprising 38% and 33.9% of total equity investments respectively.
The next largest Q3 equity investment was in the plantations sector, representing 8.5% of total equity investments.
Money market instruments provided an income of RM142.25mil, down 49.21% from RM191.46mil in Q2.
Investments in properties yielded returns of RM21.53mil, down from RM22.66mil in Q2.
“The EPF will always maintain a policy of low-risk investment decisions. As a national premier pension fund, we cannot afford to take on high risk investments,” Azlan said.
KUALA LUMPUR: With the drubbing of global equity markets, the Employees Provident Fund (EPF) reported a 60.4% drop in its unaudited investment income to RM2.06 billion in the three months through September (3Q) compared with the previous quarter (q-o-q).
The lower results were primarily due to provision of allowances amounting to RM2.29 billion for diminution in value of equity investments due to the deterioration in market value. It said the provisioning was in line with the best accounting practices and as a conservative measure.
In a statement yesterday, EPF said income from equities fell to RM1.26 billion in the third quarter from RM2.54 billion in the previous quarter. Fixed investment income was the main driver for its results in 3Q.
It received 3.1% higher returns from loans and bonds, raising income to RM1.71 billion while investments in Malaysian government securities (MGS) performed 1.4% better than in the previous quarter, posting returns of RM1.21 billion.
Apart from equities, EPF also saw lower returns on its investments in money market instruments, yielding income of RM142.25 million, down from RM191.46 million in 2Q, and in properties, with returns of RM21.53 million, down from RM22.66 million.
EPF chief executive officer Datuk Azlan Zainol said the provident fund had maintained its MGS investments despite the bond market’s recent selloff, caused by concerns of inflationary trends triggered by rising transport and energy costs.
“MGS is still a low-risk investment and we will stick to such investments in the best interests of our members. In addition to this, we maintain a low-risk profile by continuing with our policy of having the majority of our loans and bonds in high-grade companies with credit ratings of AAA or AA.”
Azlan also said the outlook in the fourth quarter was likely to reflect the full-scale impact of the global financial meltdown, although there was still hope for the Malaysian equity market to bounce back.
“We believe Malaysia’s competitive edge still has the capacity to hold the country in good stead during these difficult times,” he said.
The majority of EPF’s 3Q equity investments were in the trade and services, and finance sectors, comprising 38% and 33.9% of total equity investments respectively.
Its next largest equity investment was in the plantation sector, representing 8.5% of total equity investments. EPF said equity investments remained stable with only the plantation sector posting a 1.7% rise in investment from 2Q.
“The EPF will always maintain a policy of low-risk investment decisions. As a national premier pension fund, we cannot afford to take on high-risk investments as such a move would not be in the best interests of our members. Our prudent investment decisions are mirrored in the fact that the EPF still posted a positive investment income despite the global economic scenario,” said Azlan.
The Employees Provident Fund (EPF) may bid for Menara Citibank, a prominent building in the heart of Kuala Lumpur, as it feels that now is the time to increase its property collection.
"We are enquiring ... I can consider (bidding)," Johari Abdul Muid, deputy chief executive officer of investment, told Business Times and Berita Harian in an interview recently.
Menara Citibank, a 50-storey building that is almost fully occupied, is up for sale again after IOI Corp Bhd called off its purchase that was priced at RM586.73 million.
IOI backed out of the deal in November, forfeiting its RM73.36 million deposit paid to Inverfin Sdn Bhd, citing concern over the economy.
Inverfin is 50 per cent owned by Menara Citi Holding Co Sdn Bhd, a unit of US bank Citigroup. Singapore's CapitaLand Ltd holds another 30 per cent, while Amsteel Corp Bhd owns the rest.
"When it comes to buildings, we have a clear-cut policy to deal with more prominent ones," Johari said.
In May, the pension fund bought the 26 Boulevard building in Precinct 3, Putrajaya, from Putrajaya Holdings Sdn Bhd. More than 90 per cent of the office and retail space in the building has been taken up by government departments and companies.
EPF invested RM1.78 billion in real estate in 2007, or just 0.6 per cent of its total investments. Its portfolio includes properties such as the Sogo shopping mall, Wisma KFC and a building in KL Sentral.
Menara Citibank has a net lettable area of 733,626 sq ft and 99 per cent occupancy rate.
The net book value of the building as of December 31 2007 is RM458 million and the gross rental revenue is RM43.3 million (excluding revenue from the car park of RM3.3 million).
AN ECONOMIC downturn is bad news for a lot of people but for the Employees Provident Fund (EPF), it is music to its ears.
The pension fund, which has more than RM330 billion of assets, is eager to snap up bargains, be it in the stock market or the property market.
"Patience is the name of the game, there's nothing clever about it. For long-term fund like us, this is the time that we have waited for," Johari Abdul Muid, deputy chief executive officer of investment, told Business Times and Berita Harian in an interview recently.
As the stock market had fallen some 40 per cent in 2008, the EPF had been buying more shares in companies like SP Setia Bhd, a developer, Petronas Gas Bhd, and Public Bank Bhd, Bursa Malaysia filings show.
Although the weak stock market could make it tough for the EPF to maintain its dividend payout for 2008, buying stocks at low prices now could also mean a windfall when the market recovers.
Earlier last month, the EPF said its third quarter investment income fell 60 per cent from the second quarter as it set aside more money to cover the lower value of its stock market investments.
The EPF has 23.4 per cent of its funds in stocks in the third quarter, the third-biggest asset class after government bonds, loans and corporate bonds.
"Everyone's expecting recovery in 2010. You should see some recovery maybe middle of next year (2009), end of next year (2009)," he said.
The EPF also wants to buy more properties, a segment of which its investment is far short of what has been recommended by consultants. It can invest up to three per cent of its total but has spent only one per cent.
"There's quite a number of buildings that will probably be up for sale soon. Things are tough and cash is tight. I expect more sellers than buyers," Johari added.
Johari said he has been sending out his staff to find "good properties" for the last two months. Surprisingly, the fund has not been approached by potential sellers despite it being a natural candidate as it is flush with cash.
"Maybe they don't see us as a property player," he said.
The EPF has bought several choice assets in recent years, notably Wisma KFC and the Sogo shopping mall in Kuala Lumpur. These have been delivering good rental returns while other properties offer the chance for redevelopment.
An example is the training academy for Malaysia Airlines in Kelana Jaya which it bought for RM145 million in 2007.
"We see the potential of that piece of land. It is perfect land for redevelopment," he said.
THE Employees Provident Fund (EPF) plans to bid for the government's prime land in the Klang Valley as it seeks to boost its property investment and improve returns to its members, a senior official said.
The pension fund, which manages some RM332.4 billion currently, has invested only one per cent of its total in properties so far and it is keen for more.
"Of course we'll be interested. We are in a position to consider big tracts of land," Johari Abdul Muid, the deputy chief executive officer for investment, told Business Times and Berita Harian in an interview recently.
On November 4 2008, Deputy Prime Minister Datuk Seri Najib Razak said that companies will be allowed to develop government land under an open tender system.
It is part of the government's plan to raise funds and boost a slowing economy.
The centrepiece asset is the 1,600ha owned by the Rubber Research Institute Malaysia in Sungai Buloh, Selangor. The land is located next to the thriving Kota Damansara area.
Other possible areas for development include land in Jalan Cochrane and Jalan Ampang Hilir, which is also strategic as it is close to the Petronas Twin Towers.
The EPF can invest up to three per cent of its funds, or some RM10 billion, in properties like buildings or even land. It has invested about RM3.3 billion or one per cent, so far, Johari said.
"We have, in our normal presentation of investment (to the government), said that we are a bit short from the property perspective," he said, adding that the EPF will follow the government's decision. This means that if the land is auctioned, it will bid for them.
He explained that the EPF can buy the land on its own and then develop it in partnership with property companies.
Details of the government's plans with the land are being finalised by the Economic Planning Unit.
