Malaysia’s EPF outsources $25.2b to external fund managers in 2015

The Employees Provident Fund (EPF) outsourced MYR98 billion ($25.2 billion) of funds to external fund managers in 2015, 14 per cent more than the MYR86 billion ($22.11 billion) in 2014, a top official with the fund said.

The pension fund said this allocation was invested in both equity and fixed-income instruments, representing 14 per cent of its total investment assets.

“As a retirement fund, we are obligated to meet our members’ expectation of good returns,” the fund’s chairman Samsudin Osman said, in his keynote address at the EPF External Portfolio Managers Annual Awards Dinner 2016 last week.

He noted that investments through external fund managers allow the fund to leverage on their knowledge and skills, especially in the global financial marketplace. The approach, he said, aligns with EPF’s initiative to support the development of the asset management industry in Malaysia.

“The EPF also continues to explore higher yielding assets which fits our risk return profile as a retirement savings fund, such as equities and real assets, as well as investment diversification using a multi-asset class approach,” Osman said.

“The EPF sets high standards on performance and we are appreciative that our external fund managers have given their full commitment in managing our funds insofar that we were able to declare a dividend rate of 6.4 per cent for 2015. This was highly commendable indeed, considering that 2015 was quite a challenging year,” he added.

The fund is committed to declare no less than 2.5 per cent nominal dividend on a yearly basis and at least 2 per cent real dividend on a three-year rolling basis.

As at December 31, 2015, EPF’s total investment assets are valued at MYR684.53 billion, up 7.54 per cent from MYR636.53 billion a year ago.

Also read:

Malaysia’s EPF to hike investments in real estate, infra & private equity in five years

Malaysia’s EPF declares 6.4% dividend, total payout of $9b

Malaysia: EPF invests $55.7m in AREA Industrial Development Fund

Malaysia EPF taking baby steps in PE, prefers to co-invest, or invest through other funds

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.