Lembaga Tabung Haji embarks on 3R investment strategy

TH announced the higher net profit was underpinned by improved investment income of RM1.55b in H1 of 2020, of which RM1bil was from fixed income asset investments or 65% of its total investment income.

PETALING JAYA: Lembaga Tabung Haji (TH) is embarking on its new "3R" investment strategy -- reshape, restructure and re-energise, focusing on new asset allocation to continue providing the pilgrims fund with a stable and recurring income.

TH investment executive director Hizamuddin Jamalluddin said TH's strength relied on its strategic asset allocation and after its restructuring, the fund had focused its allocation on four asset classes, namely money market, fixed income instrument, equity, and real estate.

"Currently, TH’s assets under management amounted to about RM79 billion whereby 54 per cent are allocated to fixed income comprising bonds and sukuk.

"A further 22 per cent or RM17.26 billion are invested in the equity market particularly in sustainable stocks, and nine per cent in real estate amounting to RM7.09 billion while the balance 15 per cent or RM12.7 billion are in the money market,” he said.

He noted that in the next three years, the government has approved TH's new asset allocation of fixed income at 58 per cent, property (11 per cent), domestic equity (18 per cent), global equity (five per-cent), private equity (three per cent), and money market five per cent.

Meanwhile, TH today inked an agreement with Johor Corporation’s (JCorp) wholly-owned subsidiary to purchase a 20-storey office building, Menara VSQ 1, located in Petaling Jaya for RM147 million.

TH managing director and chief executive officer Datuk Nik Mohd Hasyudeen Yusoff said the new real estate investment was expected to generate 5.5 per cent returns on the back of full occupancy and long-term rental agreement.

"As a depositor trustee, TH will continue to look for opportunities in making new investments directly or indirectly to increase its property portfolio which can provide recurring and stable income.

"This also gives a sustainable return to nine million depositors with total deposits as of November this year of RM75.58 billion, the highest amount achieved so far," he told reporters at the purchase agreement signing ceremony today.

Minister in the Prime Minister's Department in charge of Religious Affairs Datuk Zulkifli Mohamad Al-Bakri witnessed the ceremony which was also attended by TH chairman Tan Sri Md Nor Yusof and JCorp president and chief executive Datuk Syed Mohamed Syed Ibrahim.

Nik Hasyudeen said TH is currently on the right track with its assets surpassing liabilities, but in the prevailing economic situation whereby the economy is being impacted by the COVID-19 pandemic, the pilgrims fund will remain cautious with its investment prospects. - Bernama
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