EPF’s listed equity portfolio records Rs. 112 b market value | Sunday Observer

EPF’s listed equity portfolio records Rs. 112 b market value

23 January, 2022

The Employees’ Provident Fund (EPF) managed by the Monetary Board, is Sri Lanka’s largest superannuation fund.

It operates within certain given risk parameters and has invested 94 percent of its funds in Government Securities and the balance in listed and unlisted equities, corporate debentures, trust certificates and other money market instruments.

Funds are invested in a diversified portfolio, across eligible asset classes as given in the Monetary Board approved Strategic Asset Allocation subject to stipulated limits.

“The market value of the EPF investment portfolio as at December 31, 2020 stood at Rs. 3,243 billion. In accordance with its Investment Policy, the EPF has invested around 3 percent of its funds in listed and unlisted equities with a long-term perspective to generate adequate real rates of return, the media release from the Central Bank stated.

“The performance of individual equities and the overall performance of the equity market and overall macroeconomic conditions of the country fluctuate and these changes impact the market value of the listed equity portfolio compared to the previous year.

“The valuation of the portfolio and the determination of its profitability is carried out according to Sri Lanka Financial Reporting Standards.

“In keeping with the Financial Reporting Standards, the market value of the listed equity portfolio of the EPF as at end December 2021 recorded a value of Rs.112 billion against its cost of Rs.84 billion, thereby reflecting a substantial unrealised gain of Rs. 28 billion in the portfolio.

“The EPF also realised Rs. 4.7 billion last year by way of scrip and cash dividends and capital gains. The dividend income received during the three-year period 2019 to 2021 was recorded at Rs. 2.5 billion on the unlisted equity investment portfolio of Rs. 9.6 billion,” the release added. 

EPF publishes the market value of its listed and unlisted equity portfolio on a quarterly basis in its website, and this information can be accessed through epf.lk.