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QUESTIONABLE EPF & KWAP INVESTMENTS IN FGV EPF and KWAP are state controlled pension funds, which ultimately belong to the contributors and the civil servants. The key purpose of these funds is to help depositors prepare for their retirement. As such the government and the fund managers are under a much higher standard of duty and care in their investment approach. In the case of their investments in Felda Global Venture Holding Berhad (“FGV”) shares, KEADILAN is of the view that both EPF and KWAP have a lot of explaining to do. As early as Aug 9th 2012, overall analyst views and recommendations on the stock had turned from positive to negative, with buy recommendations disappearing fast. From that date to 4th January 2013, despite the overall negative views on the stock and it falling share price, EPF continued to buy. It added another 46 million shares to its portfolio. For the same period KWAP added 10 million shares. The buying behavior of EPF and KWAP are extremely contrarian. This seems unbecoming of a pension fund. In addition, their overall forays in the open market from 29th June 2012 to 4th January 2013, spending an estimated RM455m (EPF) and RM305m (KWAP) have resulted in an estimated paper loss of RM40m for EPF and RM35m for KWAP. KEADILAN believes that EPF holders and the civil servants have a right to know whether these buys, a significant portion of which is against analyst recommendations and market views, are politically motivated. KEADILAN therefore demands EPF and KWAP to answer this question: did you ever receive any implicit or explicit instructions from the government or any politicians to buy and support the share price of FGV. Here is the current score card: …