EPF allocates RM155.18b to external fund managers in 2020

by HARIZAH KAMEL / pic by MUHD AMIN NAHARUL

THE Employees Provident Fund (EPF) announced that a total of RM155.18 billion had been outsourced to external fund managers as at Dec 31, 2020. 

This allocation, invested across both equity and fixed income instruments, represented 15.55% of the EPF’s total investment assets.

EPF chairman Tan Sri Ahmad Badri Mohd Zahir said the external fund managers continued to ensure good performance and deliver results that are within the EPF’s risk return objectives in the midst of global market uncertainties and volatilities caused by the Covid-19 pandemic.

“As our 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 time,” he said in a statement today.

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 RM42.88 billion for Simpanan Konvensional, and 4.90% with a pay out of RM4.76 billion for Simpanan Shariah. Cumulatively, the total payout for 2020 amounted to RM47.64 billion.

In line with its goal of sustainable investing, 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,” added Ahmad Badri.