KUALA LUMPUR: The Social Security Organisation (Socso) has developed a five-year investment strategy blueprint encompassing a review of policies, portfolio strategy and management, and strategies of all asset classes and enablers.
The blueprint outlines the implementation strategies of each asset class and investment opportunities in the quest to achieve higher long-term expected returns of between 5% and 6% annually for the next five years until 2022.
Socso has also reviewed its policy and guidelines to provide guidance to its investment division to live up to the expectations of Socso’s stakeholders in establishing market best practices in investment strategies and adhering to good investment.
Its investment strategies focus on capital preservation, high-yield within risk-return spectrum, long-term and sustainable returns, ethical investment, high level of corporate governance, becoming a centre of excellence in investment, and diversification.
Socso chief investment officer Dr Suzana Idayu Wati Osman said Socso aimed to achieve superior and consistent investment performance as guided by its fiduciary duties to its stakeholders, dynamic investment strategies within well-defined risk parameters, and adherence to high corporate governance and practices.
From the total assets under management of RM25.8bil (as at June 30, 2017), she said Socso has so far invested up to 20% in equities, 77% in fixed income and money market instruments, and 3% in real estate.
“A clear equity strategy is established in the overall investment strategies. The aim is to increase equity investment to 28% by 2020.
“Our target returns on equity investment are market driven, with alpha derived from active portfolio management strategies.
“The end objectives are to meet the target return and outperform the benchmarks," she said.
Suzana added that Socso is also refining its fixed-income and money market strategies to align with global best practices. — Bernama