EPF’s equity investment grows
View(s):Sri Lanka’s largest social security scheme, the Employees Provident Fund‘s (EPF) listed equity investments are now generating growth in market value although there was an unrealised loss in equity investment, analysts divulged.
Market values of investments made by the fund are increasing proportionate to purchased cost of shares in listed equities in the third quarter this year, they said.
The investment policy of the fund is focused on providing a long-term positive real rate of return to the members, a senior Central Bank official said.
The listed equities portfolio of the EPF had increased by Rs.10 billion in the third quarter of 2020.
As of 30 September 2020, the EPF had invested in 81 equities. During that period the market value was Rs.63.76 billion compared to Rs.53.58 billion, at the end of June quarter 2020, Central Bank data showed.
The EPF has invested a total of Rs.84.19 billion in these 81 companies.
As at 30 September 2020, the unrealised loss of listed equity investment portfolio of EPF stood at Rs.20.64 billion.
The highest sum of Rs.448.73 million has been invested in Access Engineering PLC and its market value has increased to Rs.483.28 million by September 30 2020.
The investment made in ACL Cables PLC was Rs. 155.51 million and the market value increased to Rs.302.46 million.
A sum of Rs.1.99 billion had been invested in Aitken Spence PLC and its market value increased to Rs.821.58 million during this period.
| EPF makes stunning profits | |
| The Employees Provident Fund (EPF) has made stunning profits by selling Hayleys’ related stocks. EPF which held 7.6 million shares in Hayleys PLC subsidiary, Dipped Products PLC as at November being its second largest shareholder with 12.8 per cent stake has reduced it since then, analysts said. Dipped Products is a hot favourite amongst both the retailers and HNWI, analysts said. On December 24, Hayleys saw 1.664 million shares crossing at Rs. 195 on a total volume of 2,289,325 shares with 18 crossings executed at Rs. 395. All buyers were locals. Stockbrokers said that a fresh set of high net-worth investors such as vehicle importers who are stuck with the cash with the prevalent import restrictions on vehicles, and vegetable importers also facing import sanctions, are putting their money into the stock market. On 31 December, 107,000 Dipped Products shares crossed at Rs 350 – again the seller was said to be EPF. (DEC)
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