The Employees Provident Fund (EPF) recorded a realised loss of RM203.18 million when it sold off its shares in Felda Global Ventures (FGV) last August.
The Finance Ministry, through a written parliamentary reply last Monday, however, said the EPF had made dividend income of RM105.77 million from its FGV shares.
“EPF will reduce or completely sell off its shares in companies that show continued decline in financial performance as well as weak management, after an analysis is conducted,” the ministry said in explaining the fund’s investment strategy.
EPF had initially held a 4.5 percent stake in FGV, before increasing its shares to 8.49 percent in Sept 2013.
FGV was listed on the KLSE in 2012, raising RM10 billion in what was touted as one of the biggest IPO in the world for that year, second only to Facebook Inc.
The company made its debut at RM4.55 a share, but prices have been on a steady downtrend since.
FGV’s share price hit a record low of RM1.19 in August 2015.
As of time of writing, FGV shares were trading at RM2.09.
The Finance Ministry’s written reply was in response to a query from Ko Chung Sen (DAP-Kampar) on EPF’s losses due to the fall in FGV share prices.
Besides EPF, other government institutions holding FGV shares are pilgrimage fund Tabung Haji and Retirement Fund Inc (KWAP).
The Finance Ministry said both Tabung Haji and KWAP were constantly monitoring their investments in FGV.