Rs. 1 trillion richness for EPF

Wednesday, 12 October 2011 00:01 - - {{hitsCtrl.values.hits}}

The Central Bank last week said that the base of the Employees Provident Fund (EPF) is expected to reach the Rs. 1 trillion milestone later this year.

“As at 31 August 2011, the value of total assets of the EPF reached Rs. 976 billion, recording an annual growth of 14.6%. With this growth, the EPF is expected to reach the total assets value of Rs. 1 trillion by end of 2011,” the bank said in a statement.

The total income of the fund has also recorded a steady growth, particularly over the last five years, enabling the EPF to pay a higher rate of return to its members.

The Central Bank said the fund is managed by a team of professionals who possess ACA, ACMA, CFA and postgraduate qualifications and also trained in investment management. A major share of the fund (92%) has been invested in Government securities, while the fund has invested 7% of its resources in equities and 1% in debt instruments of corporates.

In addition to the funds of active members, a large number of retired members also maintain their balances with the EPF after reaching the eligible age for withdrawal. Accordingly, the EPF provides the opportunity for such persons too, to retain their savings in a safe and high yielding national superannuation fund, after their retirement.

In 2010, over 210,000 new employees registered with the EPF as a result of the expansion in economic activities in the country, which enabled new employment opportunities to be generated in all sectors in the economy.