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Thursday 24 February 2011

EPF : Service Charges For Unit Trust Investment Capped At 3 Per Cent

Members of the Employees Provident Fund (EPF) will pay 50 per cent less in service charges for investment in unit trusts from January 1, 2008. The EPF announced that the service charges would be capped at three per cent, and fund management institutions cannot impose service charges beyond that.

This move as approved by the Minister of Finance will help members save on service charges. The service charges by local investment funds in Malaysia currently are relatively higher when compared with other countries like Singapore, United Kingdom, Japan and the United States.

“Members can enjoy better returns from their investment in unit trusts with the lower service charges,” said Datuk Azlan Zainol, Chief Executive Officer of the EPF.

Datuk Azlan also added, “We decided to cap the service charges at three per cent in the interest of our members and the fund managers”.

Currently members pay about five to six per cent in service charges.

“A study commissioned recently by EPF revealed that one of the major factors affecting the investment returns for our members is the high service charges imposed by the fund management institutions,” said Datuk Azlan.

About the Employees Provident Fund (EPF)




The Employees Provident Fund (EPF) is a national savings scheme, providing basic financial security for retirement. The Fund is committed to preserving and growing the savings of its members in accordance with best practices in investment and corporate governance. It will always be guided by prudence in its investment decisions.

As a customer-focused organization, the EPF delivers efficient and reliable services for the convenience of its members and registered employers.

The EPF continues to play a catalytic role in the nation’s socio-economic growth, consistent with its position as a leading savings institution in Malaysia.

Date: 12 December 2007

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