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RM132.41 billion outsourced to external fund managers

The EPF’s portfolio stood at RM924.75 billion in overall investment assets by the end of 2019. — Bernama photo

KUALA LUMPUR: A total of RM132.41 billion had been outsourced to external fund managers as at Dec 31, 2019, an increase of 12.63 per cent compared with RM117.56 billion at the end of 2018, the Employees Provident Fund (EPF) said.

In a statement yesterday, it said the allocation, invested across both equity and fixed income instruments, represented 14.12 per cent of the EPF’s total investment assets.

Its chairman Tan Sri Ahmad Badri Mohd Zahir said, “Given the size of the EPF’s portfolio, the fund is 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.’ The EPF’s portfolio stood at RM924.75 billion in overall investment assets by the end of 2019.

“The EPF is very grateful to all our fund managers, both external and our own homegrown talent, whose diligence and commitment has helped ensure the sustained performance of the funds which we have entrusted to their care,” he said.

For the financial year ended 2019, Ahmad Badri said, the EPF delivered a dividend rate of 5.45 per cent with a payout amounting to RM41.68 billion for Simpanan Konvensional, while Simpanan Shariah saw a dividend rate of 5.00 per cent with a payout amounting to RM4.14 billion.

“As we navigate market uncertainties in executing the 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.

“However, 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. We are confident that the external fund managers we have selected will help us achieve this,” he added. — Bernama

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