Employee Provident Funds is a social security organization formed to provide retirement benefits for its members by efficiently managing their saving. A contribution counted base on the monthly salary from both the employer and employee will be credited to the member’s individual account in the EPF. To ensure the members receive minimum 2.5% of annual dividend, the EPF invest the contributions in approved financial instruments to generate returns.

The objectives of the investment are to preserve and enhance the capital value from member’s contribution, and to maintain stable and consistent long term return with tolerable risks. EPF invested into different sectors to diversify and ensure higher chance of optimum return. In the investment, 55% goes to bonds including domestic government bonds, domestic non-government bonds, and foreign bonds; 37% of the investment goes to domestic listed companies, developed markets, emerging markets and private equities. They also invested in fixed assets such as domestic real estate, foreign real estate and infrastructure.

To ensure the target of providing 2.5% annual dividend is achievable, the Domestic Equity Department play a role in fund management and portfolio monitoring. Other than managing portfolio of public-listed equities in the domestic market, this department also manages equity investment through internal portfolio manager (IFM) and external portfolio manager in a prudent and transparent manner. To help Domestic Equity Department carry out its task, Equity Research Department who in charge of equity analysis and corporate surveillance and governance will provide in-house research and investment recommendation on public listed securities. This department also responsible in monitoring investee companies and lead initiative to enhance corporate governance practices.

To analyze the investment performance of EPF,