EPF members can now invest in funds that are invested 100% overseas

PETALING JAYA: Employees Provident Fund (EPF) members are now allowed to invest in unit trust funds that are fully focused on investing overseas.

Prior to this, EPF only allowed investments in unit trust funds with no more than 30% foreign exposure, although a 5% allowance in excess of the 30% threshold is permitted if it is due to share market movements or redemption activities conducted by investors.

This latest move, effective yesterday, would mean that members could opt to invest in unit trust funds that are 100% invested overseas as long as EPF recognises these funds.

With the relaxation of this limitation, EPF members will see the advantages of a wider range of investment opportunities.

It also means wider geographical opportunities for existing EPF funds.

Members can invest using their savings in Account 1.

The EPF currently manages about RM680bil of investment assets for 14.5 million members, of whom 6.7 million are active members.

It declared a dividend rate of 6.4% for 2015 and 6.75% for 2014.

Come January next year, the EPF will offer a fully syariah-compliant investment scheme, called Simpanan Syariah.

The EPF expects between 1.5 million and two million of its members to convert their savings to Simpanan Syariah during the first year of its launch.