Most Outstanding Islamic Fund Manager Award for 2nd consecutive year

Public Bank's wholly-owned subsidiary, Public Mutual won the Most Outstanding Islamic Fund Manager award for second consecutive year at the 5th KLIFF (Kuala Lumpur Islamic Finance Forum) Islamic Finance Awards 2008 ceremony. The award was presented by Y.B Tan Sri Nor Mohamed Yakcop, Minister of Finance II to Public Mutual's Chairman Tan Sri Dato' Sri Dr. Teh Hong Piow during the award presentation ceremony which was held on 18 November 2008 at the Istana Hotel Kuala Lumpur.

The 5th KLIFF Islamic Finance Awards 2008 is organised by The Centre for Research and Training (CERT) together with the host, Halal Industry Development Corporation (HDC), and in collaboration with Dow Jones Islamic Market Indexes (DJIM), the International Institute of Islamic Finance (IIIF) and Messrs Hisham, Sobri & Kadir (HSK).

Tan Sri Teh expressed pride that once again Public Mutual is bestowed this prestigous award. "This award represents the 121st award won by Public Mutual since 1999. Winning this award not only reinforces our position in the Islamic unit trust industry but also affirms our commitment to excellence," he added. Tan Sri Teh dedicated the award to Public Mutual's board of directors, the management, staff, agency force and the investors for their unwavering support and trust over the years.

Public Mutual is a leading player in the private Islamic unit trust fund sector in Malaysia. As at end September 2008, it manages 24 Islamic funds with total Islamic assets under management of RM8.5 billion. This represents 50.7% market share of the private Islamic unit trust industry. The company is also the most awarded Islamic unit trust fund manager in Malaysia, winning a total of 32 Islamic Fund Awards. This includes the "Best Islamic Fund Manager in Asia 2006 & 2007" awarded by Failaka Advisors, Dubai, a recognised leader in the field of Islamic fund research.

Public Mutual is Malaysia's largest private unit trust company with 67 funds under management. It has over 2,000,000 accountholders serviced by over 40,000-strong unit trust consultants. As at end September 2008, the total net asset value of the funds managed by the company was RM24.1 billion.

EPF: Volatile Market Creates Buying Opportunity

KUALA LUMPUR, Nov 20 (Bernama) -- Current market conditions have opened up buying opportunities for long-term investors, said the Employees Provident Fund (EPF) deputy chief executive officer, investments, Johari Abdul Muid.

He said that a bearish market was a boon to long-term investors like the EPF, as it provided an opportunity to pick up good, valued stocks at reduced prices.

He said that Bursa Malaysia is expected to remain volatile in line with global and regional markets as investors continue to take a cautious stance while monitoring developments in the domestic and global economy as well as the financial system.

He said like every other fund, the EPF was also affected due to the downturn in the stock markets but was on track until Sept 30 to basically meet budget expectations, as it had realised a big portion of the target earlier.

"The global financial crisis has led to stock markets across the globe falling dramatically. Bursa Malaysia has also not been spared," he told Bernama in a recent interview.

He said that this factor would naturally have an adverse impact on the funds income and it would be difficult for the 2008 dividend to match that of 2007.

"Furthermore, the recent quarterly announcements by listed companies have reported lower profits which usually translates into lower dividend payouts, or not at all. This will further impact the EPFs investment income for 2008 and 2009," he added.

Johari said that although the fourth quarter did not look that rosy, as the full impact of the global meltdown would be felt, it was still an opportunity to buy.

He explained that the EPF subscribed to prudent management and investment policies to ensure reasonable and sustainable returns.

"The EPF is first and foremost the custodian of retirement savings of close to 12 million members and will therefore be always guided by prudence when making investment decisions.

"It is through this investment approach that we can ensure our members are paid reasonable dividends year-on-year, without risking their savings," he said.

He also said the EPF's commitment is that,the dividend would not fall below 2.5 percent.

"Generating more income has to do with the risk that you are willing to take. As a pension fund, we must ensure that the money is safe. We have to be as efficient as possible in every asset class that we invest," he said.

In terms of asset allocation, he said that 80 percent was parked in fixed income instruments such as Malaysian Government Securities (MGS), and loans and bonds with only 20 percent in domestic equity.

The EPF, he highlighted, is allowed to invest up to nine percent of its total fund size in foreign equity markets which amounts to RM28 billion.

However, it has only invested RM19 billion to date and in the current difficult time, has managed to lock in RM500 million in profits.

"Our risk perspective when investing overseas is not to put all the eggs in one basket," he said.

He said besides in-house fund managers, EPF has also appointed external fund managers to manage its funds.

Source: BERNAMA , 20th November 2008.

Dilemma for EPF Contributors

KUALA LUMPUR: More money to use now means less for one's retirement. This is the dilemma Employees Provident Fund contributors face should they decide to opt to have their monthly contribution reduced from the mandatory 11% to the "voluntary" 8%.

The government's decision to adopt this measure to help Malaysians tide the rise in prices of goods and services and the economic downturn is heartily welcomed by those in the lower income group and struggling to pay bills.

But there are many who prefer to stick to the 11% deduction and tighten their belts momentarily.

This group is also irked by the "burden" of having to fill up an EPF form – those who do not will be deemed to be agreeable to contributing 8% for two years effective Jan 1.

Under the new scheme, a 35-year-old employee with a RM3,000 monthly salary would be able to take home an extra RM90 in his monthly pay packet, which amounts to RM2,160 over two years.

However, assuming that a 5% dividend is paid out annually with the compound element over a period of 20 years until he turns 55, he will be RM5,500 "poorer" when he retires.

If his monthly income for the next two years is RM5,000, he would lose out on a total savings of RM9,200 in his EPF upon retirement.

If his monthly income for the next two years is RM5,000, he would lose out on a total savings of RM9,200 in his EPF upon retirement.

As it is, the EPF has raised concerns about Malaysians not having enough savings to see them through 20 years past retirement, much less lead a comfortable life.

In a study by the EPF last year, the average contributor has only RM106,000 in his savings while one would need a projected sum of about RM747,000 (taking into consideration inflation rates) if one were to live for 25 years after retirement.

Source : The Star, 16^th Nov 2008.