Analysts say that while the EPF knows it has unbooked profits to be made, it does, however, only recognise profits and payments to dividends once it sells its shareholdings.
In order for the EPF to be able to announce their yearly returns it needs to sell shares and buy them back, occurring expenses in the process?
What a strange policy, why do they not just mark to market all of their listed investments?
This does explain the rather weired behaviour (which I have observed numerous times) like in this announcement:
I am dumbfounded, what a waste of money and effort and that just for some silly accounting practice, one which I don't even agree with.
All I can say is: I wish I were EPFs broker.