EPF ups amount for qualified members to invest in unit trusts

Galeria Katowicka is located in Katowice, about 260km from the Polish capital of Warsaw, and 70km from Krakow, the second-largest city. Katowice metropolitan area has a population of between three and 3.5 million. The EPF in an email said:

KUALA LUMPUR: The Employees Provident Fund (EPF) has raised the amount under the EPF members investment scheme (EPF MIS) for qualified members while maintaining its high performance benchmark for  fund management institutions (FMIs) and unit trust funds.

Its deputy CEO (Investment) Datuk Mohamad Nasir Ab Latiff said on Wednesday members who meet the basic savings requirement may transfer part of their savings from Account 1 into FMIs of their choice. 

“The amount for transfer had been revised up to not more than 30% (from not more than 20% previously) every three months from the savings in excess of the basic savings amount in Account 1,” he said. 

Nasir said the basic savings is a pre-determined amount set according to age in Account 1 to ensure members have at least RM228,000 upon reaching age 55. 

The basic savings quantum is benchmarked against the minimum pension of RM950 per month for 20 years from 55 to 75 years old. 

To recap, the EPF MIS allows members to transfer part of their savings from Account 1 for investments through the appointed FMIs as an option and flexibility to diversify their retirement portfolio and enhance their retirement savings. 

Nasir also said for the 2018/2019 period, out of 367 funds approved under the EPF MIS, 268 funds from 22 FMIs qualify for offering. This is for March 1 to Feb 28, 2019.

In the 2017/2018 period, out of the 373 funds approved, 278 funds from 22 FMIs qualified for offering. 

“The list of unit trust funds offered under the EPF MIS is evaluated annually based on the criteria established by the EPF and approved by the Ministry of Finance Malaysia. 

 “Any unit trust fund which falls below the minimum eligibility score will be suspended and will not be offered during the period.” 

For the 2018/ 2019 offering period, the minimum eligibility score of simple average rating for consistent returns (SACR) remains at 2.33. 

Nasir said the SACR, introduced in 2010, was raised from 2.00 to 2.33 in 2017 to provide further protection for investors by screening out the bottom performers. 

It is computed based on the fund’s aggregate performance over a three-year period, and taking into account its performance against its peers. 

Nasir also said effective from 2017, the 30% foreign exposure cap on investments undertaken by FMIs had been removed to provide an option for participating members wishing to tap into funds with higher potential growth and opportunities present in foreign markets. 

This revision was to meet changing members’ expectations as well as taking into account developments in the fund management industry. 

“The EPF is currently developing an electronic Members Investment Scheme Portal (e-MIS) where members may transact online at a reduced cost. This facility will provide greater flexibility, functionality and convenience for members to invest in unit trusts. 

“The e-MIS platform will also provide better access and visibility of available funds, prices and performance within MIS scheme so that members can compare and make a well informed investment decision that suits their needs and risk appetite,” he said.

Nasir said the online facility is set to be introduced by end 2019. 

Currently, members may also utilise the fund information portal which can be accessed via i-Akaun. The information portal is for members to obtain information on unit trust funds offered.