Ceylon FT: Central Bank Governor, Ajith Nivard Cabraal, says the country’s largest superannuation fund could pay its members interest at between 10.8% and 11.3% for 2013, slightly down from 11.5% in 2012.
Central Bank recently claimed that the Employees Provident Fund (EPF) has been providing incomparable good returns to its members over the past few years, despite all the speculations and allegations made by different individuals.
Presenting Road Map 2014, Central Bank Governor, Ajith Nivard Cabraal said, No other fund was able to gain a growth like EPF. The fund has done a lot better than what some of the private sector managers of investment funds were able to achieve.”
The total value of the EPF grew by 12.4% during the first nine months of 2013 mainly due to improved members’ contribution and healthy investment income. EPF’s rate of return to be credited to members for 2013 is likely to be between 10.8% and 11.3%. The total income of the fund grew by 11.9% during the first nine months last year.
At present, the EPF has an active membership of 2.3 million.
The Central Bank said, the EPF will continue to implement diversification strategies to maximize returns in the projected future low interest rate environment. The strategy will include diversification into new instruments, investments in foreign currency denominated instruments and increased participation in secondary market activities.
He went on to say that, with easing monetary conditions, fiscal consolidation and low volatility of inflation, market interest rates are expected to remain low, thereby, providing a challenging environment for the EPF to generate high returns in the medium to long-term.
An electronic data base management system and an e-record room will be set up during the second quarter of this year with electronic records. This will further enhance its services to improve efficiency thereby providing better service to its members and employer firms.
Accordingly, the fund will systematically continue to diversify its investment portfolio in order to provide better returns to its members. The EPF has invested in fundamentally sound stocks in the stock market with a long-term focus. Fund management efficiency will be increased with in-depth analysis of investments, in compliance with the internal rules and improved risk management, he added.
Critics have pointed out that the EPF funds were being used to invest in weak companies listed on the stock exchange and the annual report for 2011 is yet to be made public. (C de S)
http://ceylontoday.lk/22-51975-news-detail-epf-returns-to-members-could-dip.html
Central Bank recently claimed that the Employees Provident Fund (EPF) has been providing incomparable good returns to its members over the past few years, despite all the speculations and allegations made by different individuals.
Presenting Road Map 2014, Central Bank Governor, Ajith Nivard Cabraal said, No other fund was able to gain a growth like EPF. The fund has done a lot better than what some of the private sector managers of investment funds were able to achieve.”
The total value of the EPF grew by 12.4% during the first nine months of 2013 mainly due to improved members’ contribution and healthy investment income. EPF’s rate of return to be credited to members for 2013 is likely to be between 10.8% and 11.3%. The total income of the fund grew by 11.9% during the first nine months last year.
At present, the EPF has an active membership of 2.3 million.
The Central Bank said, the EPF will continue to implement diversification strategies to maximize returns in the projected future low interest rate environment. The strategy will include diversification into new instruments, investments in foreign currency denominated instruments and increased participation in secondary market activities.
He went on to say that, with easing monetary conditions, fiscal consolidation and low volatility of inflation, market interest rates are expected to remain low, thereby, providing a challenging environment for the EPF to generate high returns in the medium to long-term.
An electronic data base management system and an e-record room will be set up during the second quarter of this year with electronic records. This will further enhance its services to improve efficiency thereby providing better service to its members and employer firms.
Accordingly, the fund will systematically continue to diversify its investment portfolio in order to provide better returns to its members. The EPF has invested in fundamentally sound stocks in the stock market with a long-term focus. Fund management efficiency will be increased with in-depth analysis of investments, in compliance with the internal rules and improved risk management, he added.
Critics have pointed out that the EPF funds were being used to invest in weak companies listed on the stock exchange and the annual report for 2011 is yet to be made public. (C de S)
http://ceylontoday.lk/22-51975-news-detail-epf-returns-to-members-could-dip.html
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