Height of optimism!

A business leader present at yesterday’s unveiling of 2012 and beyond roadmap by the Central Bank remarked that it was a “height of optimism.”

A tourism industry representative quipped Governor Cabraal’s statement that 197 hotel projects are in the pipeline wasn't true whilst a capital market player said that Central Bank Chief mischievously gave a wrong impression on the value of EPF investments at Rs. 78 billion as at end 2011 (as opposed to Rs. 44 billion in 2010) without disclosing the actual amount invested given the market's loss.

The market was down 8.5% in 2011.

However Governor said EPF invests in shares of fundamentally sound companies approved by the Monetary Board, with a long-term view. He revealed that growth of EPF in 2012 was 14% and its fund base topped the Rs. 1 trillion mark.

Rate of return on investments in 2011 was forecast at 12.3% whilst projected return in 2012 is 11.1%.

Cabraal said focus of the EPF on to the future will be to:  ensure a significant positive real rate of return to the members in a medium to long term time horizon (Benchmark to be at least 1.5% over inflation in any five year period); ensure safety of the fund and provide an efficient and caring service to the members through enhancing the efficiency of operational processes.