Malaysia’s Armed Forces Pension Fund will reduce its stake in Affin Bank Bhd
. to 9% as it seeks to reduce holdings in strategic assets and invest the proceeds in fixed income, Defence Minister Mohamed Khaled Nordin said.
The fund, known as LTAT, currently owns about 22% of Affin after selling some of its shares to Sarawak, Malaysia’s biggest state, last year.
LTAT also plans to reduce its equity interests in Boustead Holdings to 12%, and Boustead Plantations to 7%, Khaled said in parliament on Tuesday.
The fund will reduce its exposure to strategic assets to 35% of its portfolio, from 57.8%, the minister said. Fixed-income investments are less risky and will guarantee returns, he said.
The plan to reduce its stakes in strategic assets is awaiting approval from the finance minister, Khaled said, without giving a timeline. - Bloomberg
