EPF updates list of unit trust funds

  • Corporate News
  • Friday, 01 Mar 2019

The Employees Provident Fund (EPF) reported its net investment income of RM9.66bil, down by 25% from the RM12.88bil a year ago.

PETALING JAYA: The Employees Provident Fund (EPF) has published its annual qualifying list of Fund Management Institutions (FMIs) and unit trust funds under the EPF Members Investment Scheme (EPF MIS) for the period between March 1 until Feb 29, 2020.

The provident fund said a total of 382 funds had been approved under the EPF MIS for the period, but only 282 funds, including nine new funds, from 19 FMIs had qualified for offering.

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

“Any unit trust fund which falls below the minimum eligibility score will be suspended from offering during the period,” EPF deputy CEO (Investment) Datuk Mohamad Nasir Ab Latif said in a statement yesterday.

EPF said the minimum eligibility score of simple average rating for consistent returns (SACR) was maintained at a 2.33 rating for three consecutive years, and 26% of approved funds which fell short of the rating had been suspended from offering this year.

The EPF MIS was introduced as an option for members to invest a portion of their EPF Account 1 savings in unit trust funds or via private mandates managed by the appointedFMIs. 

Based on their age, contributors can transfer up to 30% of the amount in excess of Basic Savings, from their EPF Account 1, to be invested in the qualified funds. 

Mohamad Nasir said members will now be required to have higher savings in their EPF account in order to be eligible to participate in the EPF MIS.

This is in line with the revision in the quantum of Basic Savings, from RM228,000 to RM240,000 at age 55, effective January 1, 2019. 

He said the new quantum was benchmarked against the minimum pension for public sector employees, which has been raised from RM950 to RM1,000 per month. 

He added that the EPF was currently developing an electronic Members Investment Scheme Platform (e-MIS) which will enable members to transact online at reduced cost. 

The online facility, which is set to be introduced by the end of this year, is aimed at providing better access and visibility of available funds, prices and performance within the MIS scheme.

The EPR, however, reminded contributors that investments via the EPF MIS were on voluntary basis and members will have to assume full responsibility over their decisions to participate in the scheme.

“Even though the EPF has approved these unit trust funds, it does not imply that we are making any recommendations or suggestions for members on any of the unit trust funds. 

“We strongly encourage members to seek advice from qualified financial advisers before deciding to participate in the scheme,” Mohamad Nasir added.
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