KUALA LUMPUR: The Employees Provident Fund (EPF) outsourced RM108 billion to external portfolio managers as at 31 December 2016.
This is an increase of 10.36 per cent compared to RM97.86 billion outsourced in 2015.
The allocation, invested in both equity and fixed income instruments, represented approximately 14.77 per cent of the EPF’s total investment assets.
The retirement savings fund said that the allocation, invested in both equity and fixed income instruments, represented 14.77 per cent of the EPF’s total investment assets.
“As we gear up towards becoming a trillion-ringgit fund, we will continue to outsource a portion of our funds as part of our diversification initiative, and to suitably leverage on the knowledge and skillsets of external fund managers that complement our own internal fund management capabilities,” said EPF chairman Tan Sri Samsudin Osman.
Speaking at the EPF External Portfolio Managers Annual Awards 2017 held on Thursday night, Samsudin said that the fund will increase its exposure in the markets it invests in, especially in alternative investments and infrastructure.
In an emailed statement, EPF said its investment objective remains to declare no less than 2.5 per cent nominal dividend on a yearly basis, and at least two per cent real dividend on a three-year rolling basis.
“With about 45 per cent of investment assets being shariah-compliant prior to the launching of Simpanan Shariah in 2016, the EPF now expects to grow these assets by at least RM25 billion a year on average to meet the demand of its members,” the statement added.