KUALA LUMPUR: The Employees Provident Fund (EPF) outsourced RM155.18bil or 15.55% of the EPF’s total investment assets, to external fund managers as at Dec 31, 2020.
In a statement on Friday, the retirement fund said this allocation was invested across both equity and fixed income instruments.
EPF Chairman Tan Sri Ahmad Badri Mohd Zahir said, “In the midst of global market uncertainties and volatilities caused by the Covid-19 pandemic, the external fund managers continued to ensure good performance and deliver results that are within the EPF’s risk return objectives.
He pointed out that as the EPF fund size grows, “we will continue to outsource a portion of our funds to optimise returns and enhance the performance of our assets.
“Our external fund managers’ insights and capabilities have become among the factors contributing to the success of the EPF and the well-being of our members, which is imperative in this difficult economic times,” he said.
For the 2021 External Fund Managers Award, 19 awards comprising nine categories for fixed income and 10 categories for equity were accorded to the top external fund managers in recognition of their stellar performances.
For the financial year ended 2020, the EPF delivered a dividend rate of 5.20% with a pay-out of RM42.88bil for the conventional savings or Simpanan Konvensional, and 4.90% with a pay out of RM4.76bil for Simpanan Shariah. Cumulatively, the total pay out for 2020 amounted to RM47.64bil.
Ahmad Badri said the EPF has also been working closely with external fund managers on environmental, social and governance (ESG) initiatives in creating awareness and incorporating sustainability parameters in their investment processes.
“We are confident that our fund managers will continue to deliver superior performance and maintain high governance standards in managing EPF’s portfolios, while ensuring the sustainability of our assets over the long term,” he added.