EPF to deliver good returns above inflation rate

The Employees Provident Fund (EPF) is optimistic that it will continue to deliver real rate of return of 2.0 percent above the rate of inflation this year despite the volatility in equity markets, says chief executive officer Shahril Ridza Ridzuan.

He said the “inflation plus 2.0" key target, which defined its contribution to investors, has led EPF to outperform over the last five to six years when it managed to deliver a larger return of “inflation plus 4.0".

“In the first quarter of this year, the equity market performance was very tough not only for EPF but also for any investment fund manager around the world given the high volatility and low yield.

“So we expect, with all these challenges, to continue focusing on the ‘inflation plus 2.0' to ensure that we can deliver real growth for our investors and members for a very long period of time,” he told reporters after releasing the fund’s 2015 Annual Report in Kuala Lumpur today.

Meanwhile, Bank Negara Malaysia expected inflation to grow between 2.5 percent and 3.5 percent this year.

- Bernama