ACTIVE fund managers always rebalance their portfolios when economic and market conditions change. It is an acceptable practice and considered prudent for active funds.
However, when Urusharta Jamaah Sdn Bhd (UJ) disposed shares in listed companies in the last few months it was frowned upon.
But what the special-purpose vehicle (SPV) is doing is merely to rebalance its portfolio and shore up its financials to invest in stocks with attractive valuations.
UJ, which is the Finance Ministry’s SPV set up in late 2018 to take over the non-performing assets of Lembaga Tabung Haji (LTH), has been aggressively trimming its stake in listed companies since early this year.