EPF outsourced RM132.41b to external fund managers as at end-2019

EPF outsourced RM132.41b to external fund managers as at end-2019

PETALING JAYA: The Employees Provident Fund (EPF) outsourced a total of RM132.41 billion to external fund managers as of Dec 31, 2019, a 12.63% increase from RM117.56 billion outsourced at the end of 2018.

The allocation was invested across equities and fixed-income instrument, and represented 14.12% of EPF’s total investment.

“Given the size of the EPF’s portfolio, which came up to RM924.75 billion in overall investment assets by the end of 2019, we are continuing to engage external fund managers to invest a portion of our funds with the aim of further optimising returns and as part of efforts to diversify and enhance the performance of our assets,” said EPF’s chairman Tan Sri Ahmad Badri Mohd Zahir in a statement.

For the financial year ended 2019, EPF delivered a dividend rate of 5.45% with a payout amounting to RM41.68 billion for Simpanan Konvensional, while Simpanan Shariah saw a dividend rate of 5% with a payout amounting to RM4.14 billion.

“As we navigate market uncertainties in executing EPF’s investment strategies, we must manage our expectations for the near-term, as the Covid-19 pandemic has entirely reshaped the way the world operates,” said the chairman.

However, he said that the fund will continue to strive to maintain stable and consistent returns over the long-term within tolerable risk limits, as well as to preserve and enhance the value of the capital from members’ savings.

source https://www.thesundaily.my/business/epf-outsourced-rm13241b-to-external-fund-managers-as-at-end-2019-LX2606195