EPF RECORDS US$1.36 BLN INVESTMENT INCOME IN SECOND QUARTER

KUALA LUMPUR, Sept 3 (Bernama) -- The Employees Provident Fund (EPF)recorded an
investment income of RM4.8 billion (US$1.36 billion) in the second quarter of
2009, as investments in equities raked in better returns.

The income was 46.64 per cent better than the RM3.27 billion accrued in the
first quarter of this year, EPF said in a statement here Thursday.

" Despite the instability of the global economy, the EPF managed to meet
expectations and deliver better investment results in the second quarter," said
its Chief Executive Officer Azlan Zainol.

Equities was the highest income contributor for the quarter, growing
seven-fold to RM1.74 billion, against RM239.55 million earned in the previous
quarter.

He said improving global and domestic markets contributed to the surge in
income from equities for the quarter under review.

Azlan said the second quarter showed signs of recovery in major global
equity indices especially in countries where the provident fund had invested.

" While we cannot say the worst is over. Should the trend continue, or
at least maintain at the current level, EPF is positive we can reverse the
bulk of the allowances for diminution in value of equity investments that we
made last year," he added.

In the second quarter, loans and bonds were the highest income earner,
contributing RM1.81 billion to EPF's total investment income compared with
RM1.78 billion attained in the previous quarter.

Another major contributor was income from Malaysian Government Securities,
which rose marginally by RM830 million to RM1.11 billion.

Meanwhile, money market instruments recorded an income of RM94.27 million
during the quarter, a drop of 21.51 per cent from RM120.11 million earned in the
first quarter 2009.
EPF's total fund size currently stood at RM353.93 billion, up 1.61 per cent
from the first quarter's fund size of RM348.31 billion.

" While there are signs of stabilisation in the global market, it is
nevertheless too early to see how this will affect us for the remainder of the
year," he said.

Azlan said as a long term investor and custodian of more than RM350
billion in retirement funds, the EPF would continue to take proactive measures.

He assured that the fund would continue to enhance the value of its members'
savings, in these challenging times, while maintain prudent approach at all
times. (US$1=RM3.54)
-- BERNAMA