KUALA LUMPUR — Feb. 12, 2018: The Employees Provident Fund (EPF) is eyeing an expansion by going into the Latin American market as part of its efforts at boosting its global assets portfolio to 32 per cent this year from 28 per cent previously.
“Like many global pension funds, we need to have a balanced portfolio and increase exposure as much as possible to growth around the world,” said Chief Executive Officer Datuk Shahril Ridza Ridzuahe at the fund’s 2017 dividend briefing today.
He said overseas investments also provided high returns, contributing 41.4 per cent of the EPF’s total income, despite only making up of only 28 per cent of its total investments last year.
“Our historical chart has shown that global assets give us the necessary diversification and exposure to growth, which is vital for the fund to continue to perform and provide the kind of return that our members expect.”
Diversification into overseas markets also helped the fund compensate for any downturn.
As of last year, EPF had a presence in 30 markets, primarily in the developed world, North Asia and Asean.
On Shariah Savings, Shahril said they had, as of last year, attracted about 700,000 contributors with total funds of RM68 billion from RM100 billion allocated for this segment.
The total Conventional Savings and Shariah Savings have about 14 million contributors and a total fund size of RM768.51 billion.
Shariah assets made up 47.5 per cent of the fund’s total asset exposure and contributed 42.9 per cent of total income last year.
The shariah investments’ under performance was attributed to the oil and gas and mobile telecommunication sectors.
Nevertheless, these investments contributed 36 per cent to conventional savings dividend distributions on top of 100 per cent contributions to Shariah savings.
On Saturday, EPF announced a 6.9 per cent dividend for conventional savings with a payout amounting to RM44.15 billion and 6.4 per cent dividend for shariah savings, with the payout amounting to RM3.98 billion. — Bernama