Some RM115.2b have been invested in different equities and fixed income instruments

by HARIZAH KAMEL / Pic by MUHD AMIN NAHARUL

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

In a recent statement, EPF said the 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 while in the 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 wellbeing of our members, which is imperative in this difficult economic time,” 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.

In line with its goal of sustainable investing, EPF has also been working closely with external fund managers on environmental, social and governance 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.

The EPF recorded RM34.05 billion of total investment income for the first half of the year ended June 30, 2021 (1H21). This is an increase of RM6.79 billion, or 25%, compared to RM27.26 billion in 1H20.

Total gross investment income for the second quarter (2Q21) was RM14.77 billion, RM350 million lower than RM15.12 billion recorded in 2Q20.

CEO Datuk Seri Amir Hamzah Azizan said EPF delivered a resilient performance in 1H21 driven by the progressive recovery of the equity markets and most asset classes amid the global rebound.

“The accelerating rollout of Covid-19 vaccines and the reopening of economies had supported a stronger performance for equities in the developed markets.

“However, equities in the emerging markets were more muted, due to the resurgence of Covid-19 in South-East Asian countries and tighter regulations imposed by China authorities on several sectors that had triggered a sharp decline in stock prices,” he said.

Equities continued to be the main contributor of income for 2Q21 at RM7.89 billion, accounting for 53% of total gross investment income.

For the financial year ended 2020 (FY20), the EPF delivered a dividend rate of 5.2% with a payout of RM42.88 billion for Simpanan Konvensional and 4.9% with a pay out of RM4.76 billion for Simpanan Shariah. Cumulatively, the total payout for 2020 amounted to RM47.64 billion.