EPF proven to be successful retirement funds globally

EPF proven to be successful retirement funds globally — CIMB
February 12, 2018, Monday



KUALA LUMPUR: The Employees Provident Fund (EPF) has proven to be one of the most successful retirement funds globally, said CIMB Group.

Its Group chief executive, Tengku Datuk Seri Zafrul Aziz said the commendable dividend rate is truly reflective of a well-diversified investment strategy.

On Saturday, EPF declared a dividend rate of 6.9 per cent for conventional accounts for 2017, with a payout amounting to RM44.15 billion and 6.4 per cent for Simpanan Shariah for 2017, with payout amounting to RM3.98 billion. Zafrul said CIMB also strongly supports EPF’s cause to make retirement a mainstream topic so that more youths could plan for it, whether through the EPF or Private Retirement Scheme, as soon as they start working. — Bernama

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EPF eyes Latin America as new investment destination
February 13, 2018, Tuesday


KUALA LUMPUR: The Employees Provident Fund (EPF) is eyeing expansion 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 in 2017.

Chief executive officer, Datuk Shahril Ridza Ridzuan, said an increase in the overseas asset portfolio would provide the fund with the necessary diversification and returns to meet contributors’ expectations.

“Like many global pension funds, we need to have a balanced portfolio and increase its exposure as much as possible to growth around the world,” he told reporters at the fund’s 2017 dividend briefing yesterday.

He said overseas investments also provided high returns, contributing 41.4 per cent of the total income, despite only making up of only 28 per cent of 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,” he said.

He said diversification into overseas markets also helped the fund compensate for any downturn in any of its investment market and continue to grow.

As of last year, EPF has presence in 30 markets, primarily in the developed market, North Asia and Asean.

On Shariah Savings, Shahril said, they had, as of last year, attracted about 700,000 contributors with a total size of RM68 billion from RM100 billion allocated for the savings.

The total Conventional Savings and Shariah Savings have about 14 million contributors and total fund size of RM768.51 million, he said. He said 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.

“Shariah investments’ underperformance was attributed to oil and gas and mobile telecommunication sectors,” he said.

Nevertheless, he said, Shariah investments contributed 36 per cent to conventional savings dividend distributions on top of 100 per cent contributions to Shariah savings.

On Saturday, EPF announced 6.9 per cent dividend for conventional savings with a payout amounting to RM44.15 billion and 6.4 per cent dividend to Shariah savings, with payout amounting to RM3.98 billion. — Bernama