2008 Q3 EPF’s investment income down 60.4%

The Employees Provident Fund (EPF) today announced that its unaudited investment income in the third quarter fell 60.4 per cent to RM2.06 billion from RM5.19 billion in the second quarter this year.

The income was also lower than RM4.25 billion in the third quarter of 2007.

The drop was mainly because of the fall in income from equities to RM1.26 billion compared to RM2.54 billion in the second quarter, said EPF in a statement.

EPF also made allowances amounting to RM2.29 billion for diminution in value of equity investments due to deterioration in market value.

The pension fund invested RM77.68 billion of its assets in equities with the bulk of it in trade and services (38 per cent), finance sector (33.9 per cent) and equity (8.5 per cent).

EPF said its income from Malaysian Government Securities (MGS) and loans and bonds posted higher returns compared to the second quarter.

In the third quarter, EPF’s returns from loan and bonds increased 3.1 per cent to RM1.71 billion while the returns from MGS rose 1.4 per cent to RM1.21 billion.

EPF invested RM102.37 billion in MGS, RM132.6 billion in loans and bonds, RM17.94 billion in money market instruments and RM1.82 billion in properties.

Its income from money market instruments in the third quarter fell to RM142.25 million from RM191.46 million in the second quarter while returns from properties fell to RM21.53 million from RM22.66 million previously.

EPF chief executive officer Datuk Azlan Zainol said 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 due to the country’s competitive edge.

from Malaysia Insider

If EPF with all the expert can income down 60.4%, what will be the loss of ValueCap?