Based on the data, are you convinced EPF invested in highest possible qualities companies? Where are IOI Corp, Public Bank, etc? I mean in large position.
Second bullet, 2006 quoted securities of 44 billion but has impairment provision of 2.7 billion or 6%. 2005 also has about same percentage. Bursa Malaysia was doing pretty good for that two years, why???
Third bullet, invested in unquoted securities in 2006 at cost of 514 million but dimunution provision is almost 135 million or 26% at risk!
If Khazanah has 50-70 billion portfolio generating 17% return from 2005 to 2006, why can't EPF? If ASB churning out 8-10% ROI, again why can't EPF? I don't even want to go near there........have the highest qualities companies gone to that two funds?
Some other interesting behavior of members withdrawal, most like to buy high-sell low. More money pouring into stock market during rising market.
Last chart for your reference on EPF historical dividend payout since 1952.
(Click images for larger and sharper image)
2 comments:
EPF is compulsary contribution (or donation??), so EPF can screw us up as they wished. But I will definitely pullout when I reached 55.
Khazanah is government owned, ASB is private invested instituition, so they have to be profit orientated otherwise the government would not have enough fund or the private investors will pull out from ASB. I'll reinvest in ASB (from my EPF monies) after 55.
Your list merely stated the total percentage shareholding of EPF holding the particular stock. If you look at the percentage of fund allocated, the listed would be different. EPF definitely invest more fund in big cap such as IOI, KLK, sime, Maybank etc...However, i acknowledge EPF decision making to invest are not as prof as other private fund. perhaps the only way to increase return is withdraw money from EPF to pare down your housing loan as it like getting return of 7% base on current leading rate and channel back your original monthly home loan income to invest in unit trust/REITS by adopting monthly average cost investing
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