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Our List of Most Consistent Performing EPF Funds February 23, 2018
In this article, we share with investors our list of most consistent performing EPF-approved funds on our platform.
Author : Tan Wei Yine


Our List of Most Consistent Performing EPF Funds

Happy Chinese New Year!

A little more than two weeks ago, EPF announced that it would offer a 6.9% and 6.4% dividend to conventional savings and shariah savings respectively for 2017, bringing cheers to contributors ahead of the Chinese festive season. With a higher amount of dividend, EPF contributors are now able to further diversify their retirement nest egg.

For investors who are seeking to diversify their retirement holdings via EPF-approved unit trust schemes, they could filter a list of EPF-approved funds with our Fund Selector tool. We understand that investors may be overwhelmed with the vast array of funds available on our platform, and hence decided to put together a list of equity funds that have performed consistently over the past 5 years.

Methodology and Context

A benchmark of 7.0% annualized return is set as a basis of comparison while we screen the funds. We have set our scope on EPF-approved equity funds, given that these funds possess better potential to generate returns above the target returns. Additionally, we have filtered funds that have outperformed the benchmark returns in calendar year terms at least 4 times out of the past 5 years.

At the time of writing, there is a total of 53 EPF-approved equity funds on our platform, with 18 of them investing overseas. The average 3-year and 5-year annualized returns of these equity funds are 9.7% and 8.6% respectively. We have tabulated the 5 top and consistent performing EPF-approved equity funds in terms of annualized return, categorised by domestic equity funds and foreign equity funds.

Domestic Equity Funds

Table 1: Fund performance of EPF-approved domestic equity funds

Funds
2013
2014 2015 2016 2017 3-Yr* 5-Yr*
Eastspring Investments Small-Cap Fund 64.0% 16.6% 26.0% 0.3% 21.7% 10.2% 22.8%
Eastspring Investments MY Focus Fund 45.4% 12.9% 11.5% -1.9% 21.4% 7.6% 17.4%
Kenanga Growth Fund 26.5% 9.3% 20.9% 0.0% 25.8% 11.4% 16.1%

Bloomberg, iFAST compilations. Data as of 15 Feb 2018. Returns in MYR terms inclusive of any dividends reinvested.
*Annualised | Red figures denote underperformance

Having had a tough year back in 2016, most of the Malaysian equity funds managed to reverse their losses with the help of stronger economic backdrop. As seen above, the selected funds clocked robust double-digit gains in 2017. Comparing to the list we had last year, we have not added any new fund to the domestic equity funds’ list this year.

Read about why we think you should consider Kenanga Growth Fund.

Foreign Equity Funds

Table 2: Fund performance of EPF-approved foreign equity funds

Funds
2013
2014 2015 2016 2017 3-Yr* 5-Yr*
CIMB-Principal Greater China Equity Fund 13.1% 14.9% 18.8% 10.6% 29.6% 17.8% 16.5%
Eastspring Investments Dinasti Equity Fund 10.4% 4.1% 19.0% 9.9% 34.3% 17.8% 14.2%
CIMB-Principal Asia Pacific Dynamic Income Fund - MYR 20.6% 18.6% 8.9% 6.8% 27.5% 12.0% 14.6%
CIMB-Principal Asian Equity Fund 16.5% 19.1% 9.5% 5.1% 30.4% 12.0% 14.6%
CIMB-Principal Global Titans Fund 34.2% 10.7% 24.2% 6.0% 8.2% 9.7% 14.2%
Affin Hwang Select Asia (Ex Japan) Quantum Fund 21.5% 8.8% 9.4% 12.0% 10.9% 8.8% 10.2%
TA Asian Dividend Income Fund 10.0% 8.0% 9.9% 5.1% 13.6% 7.0% 7.6%

Bloomberg, iFAST compilations. Data as of 15 Feb 2018. Returns in MYR terms inclusive of any dividends reinvested.
*Annualised | Red figures denote underperformance.

Comparing with the last we came up last year, there is one new additional fund on the list – CIMB-Principal Asian Equity Fund, where we on-boarded the fund around September last year. Currently, most of the foreign EPF-approved funds predominantly invest in the Asia ex-Japan and emerging markets regions. For Shariah investors who are looking to invest into the Greater China region, they may consider Eastspring Investments Dinasti Equity Fund.

Takeaway

Retirement savings tend to have a longer investment horizon, and that amplifies the effects of compounding return. Over the long-run, a small difference in returns could translate to a huge impact on portfolio returns. For investors who are seeking to diversify their retirement holdings and potentially enhance their retirement savings’ return, they may consider the consistent performing funds listed above.

While some of these funds’ returns may appeal to investors at first sight, it is important for investors to note that some of the single-country foreign funds and equity funds with exposure towards the small-cap segment tend to be more volatile, and would only be suitable for those who can stomach the volatility.


This article is not to be construed as an offer or solicitation for the subscription, purchase or sale of any fund. No investment decision should be taken without first viewing a fund's prospectus, product highlight sheet (PHS), and if necessary, consulting with financial or other professional advisers. Any advice herein is made on a general basis and does not take into account the specific investment objectives of the specific person or group of persons. Amongst others, investors should consider the fees and charges involved. The relevant prospectuses have been registered and lodged with the Securities Commission. Past performance and any forecast is not necessarily indicative of the future or likely performance of the fund. The value of units and the income from them may fall as well as rise. Where a unit split/distribution is declared, investors are advised that following the issue of additional units/distribution, the NAV per unit will be reduced from pre-unit split NAV/cum-distribution NAV to post-unit split NAV/ex-distribution NAV. Where a unit split is declared, investors should be highlighted of the fact that the value of their investment will remain unchanged after the distribution of the additional units. All applications for unit trusts must be made on the application form accompanying the prospectus. The prospectuses and PHS can be obtained from Fundsupermart.com. Opinions expressed herein are subject to change without notice. Please read our disclaimer in the website.