EPF plans to increase overseas investments to improve returns
Employees Provident Fund already has the nod to invest in global bonds and can invest more than US$10 billion in stocks and bonds outside Malaysia.
STATE-OWNED pension fund Employees Provident Fund (EPF) will increase its overseas investments to improve returns and sustain its dividend rate.
Chairman Tan Sri Samsudin Osman (right) said the fund already has the nod to invest in global bonds. In fact, it can invest more than US$10 billion (RM31.9 billion) in stocks and bonds outside Malaysia.
"This is indeed a very sizable amount, making up approximately 10 per cent of our total fund of RM380 billion as at end of February 2010," he said at EPF's Portfolio Managers Annual Award Dinner 2010 in Kuala Lumpur.
The EPF manages the retirement savings of 12.4 million members. It declared a 5.65 per cent dividend for 2009, up from 4.5 per cent in 2008.
It has invested about US$6 billion (RM19.14 billion) in stocks abroad so far.
Samsudin also disclosed that this year, the EPF would outsource US$690 million (RM2.2 billion) to nine managers for the global Islamic equity mandates and US$600 million (RM1.91 billion) to four managers for the global sukuk mandates.
"The EPF will also be outsourcing about US$800 million (RM2.55 billion) for the global fixed income mandate scheduled by the end of the third quarter this year.
"With more than US$2 billion (RM6.38 billion) to be outsourced this year, we hope the industry will reciprocate by building capacity and capabilities coupled with good returns," he said.
The EPF recently hired a foreign-owned domestic manager to manage its domestic fixed income mandate, so as to add competition to the existing local managers.
Meanwhile, five categories of awards have been presented to top performing external portfolio managers, with three in the equity category and two in the fixed income category.
HwangDBS Investment Management Bhd was named 2009 Best Overall Equity Portfolio Manager, an award based on a three-year rolling financial performance and quality of service measures.
Nomura Asset Management Malaysia Sdn Bhd and CIMB-Principal Asset Management Bhd were picked as the first and second runner-up, respectively.
The Best Three-year Realised Return Equity Manager award was also secured by HwangDBS Investment Management, while the Best Risk-Return Equity Portfolio Manager award - based on the overall total fund three-year performance as measured by the information ratio - was bagged by Nomura Asset Management Malaysia.
In the fixed income category, AmInvestment Management Sdn Bhd went away with the Best Overall Fixed Income Portfolio Manager and the Best 3-Year Realised Return Fixed Income Manager.
STATE-OWNED pension fund Employees Provident Fund (EPF) will increase its overseas investments to improve returns and sustain its dividend rate.
Chairman Tan Sri Samsudin Osman (right) said the fund already has the nod to invest in global bonds. In fact, it can invest more than US$10 billion (RM31.9 billion) in stocks and bonds outside Malaysia."This is indeed a very sizable amount, making up approximately 10 per cent of our total fund of RM380 billion as at end of February 2010," he said at EPF's Portfolio Managers Annual Award Dinner 2010 in Kuala Lumpur.
The EPF manages the retirement savings of 12.4 million members. It declared a 5.65 per cent dividend for 2009, up from 4.5 per cent in 2008.
It has invested about US$6 billion (RM19.14 billion) in stocks abroad so far.
Samsudin also disclosed that this year, the EPF would outsource US$690 million (RM2.2 billion) to nine managers for the global Islamic equity mandates and US$600 million (RM1.91 billion) to four managers for the global sukuk mandates.
"The EPF will also be outsourcing about US$800 million (RM2.55 billion) for the global fixed income mandate scheduled by the end of the third quarter this year.
"With more than US$2 billion (RM6.38 billion) to be outsourced this year, we hope the industry will reciprocate by building capacity and capabilities coupled with good returns," he said.
The EPF recently hired a foreign-owned domestic manager to manage its domestic fixed income mandate, so as to add competition to the existing local managers.
Meanwhile, five categories of awards have been presented to top performing external portfolio managers, with three in the equity category and two in the fixed income category.
HwangDBS Investment Management Bhd was named 2009 Best Overall Equity Portfolio Manager, an award based on a three-year rolling financial performance and quality of service measures.
Nomura Asset Management Malaysia Sdn Bhd and CIMB-Principal Asset Management Bhd were picked as the first and second runner-up, respectively.
The Best Three-year Realised Return Equity Manager award was also secured by HwangDBS Investment Management, while the Best Risk-Return Equity Portfolio Manager award - based on the overall total fund three-year performance as measured by the information ratio - was bagged by Nomura Asset Management Malaysia.
In the fixed income category, AmInvestment Management Sdn Bhd went away with the Best Overall Fixed Income Portfolio Manager and the Best 3-Year Realised Return Fixed Income Manager.
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