The portfolio value of the EPF, which represents 13 per cent of the total assets of the financial sector, surpassed Rs.1 trillion in 2012, the Central Bank said. As at end December 2012, the value of the EPF was Rs.1,144 billion with 2.25 million active members of the Fund. There were 12 million non-contributory accounts which are accounts of members under their previous employers.
The EPF is administered by the Commissioner of Labour, while the responsibility for the management of the Fund lies with the Monetary Board of the Central Bank.
According to the Central Bank, the investment income of the Fund during the year ending December 2012 was Rs.121.4 billion. As at end December 2012, the investment portfolio consisted of government securities, which accounted for 91.5 per cent of the investment portfolio, equity, which accounted for 5.4 per cent of the investment portfolio, corporate debt, which accounted for 1 per cent of the investment portfolio, and reverse repos.
“The effective rate of return on member balances was 11.5 per cent for the year 2012,” the Bank said.
Total contributions in 2012 increased by 13.4 per cent to Rs.70.2 billion, while the refunds increased by 3.0 per cent to Rs.48.7 billion, resulting in a net contribution (contributions minus refunds) of Rs.21.5 billion,” the Bank disclosed.
In 2012, total assets of the EPF increased by 12.4 per cent to Rs.1,144 billon while the total investment portfolio of the EPF amounted to Rs.1,105.5 billion.
In comparison, the Unit Trust Industry which had 29 per cent of its investments in equities and 18 per cent in government securities recorded a weighted average return of 1.96 per cent for the year 2012.
Meanwhile, the ETF, which accounted for about 1.8 per cent of the assets of the financial sector, witnessed an increase in its asset base with increased net contributions, despite a slightly negative growth in gross income. The gross income of the fund declined by 10 per cent during the year to Rs.13.9 billion. The ETF had a value of Rs.158 billion as at end December 2012, and has about 9.8 million accounts, of which, about 2.2 million are active.