LTAT to rebalance portfolio, increase equity exposure


THE Armed Forces Fund Board (LTAT) aims to increase its public equity to 50% by realigning its asset allocations to get exposure in international markets.

CEO Datuk Ahmad Nazim Abdul Rahman (picture) said the retirement fund targets to increase its public equity allocation to 50% from 44.1%, with 30% to be assigned for foreign investments.

“So, we will see 20% allocated for investments abroad while the remaining 30% would be for the domestic market.

“We are also looking at investing (overseas) in the third or fourth quarter of this year after getting the necessary approval from the Ministry of Finance and Bank Negara Malaysia,” he said during the MIDF Conversations session with MIDF group MD Datuk Charon Wardini Mokhzani yesterday.

Ahmad Nazim added LTAT is looking at reducing its exposure in the real estate sector to 10% compared to 27.3% previously and increasing its exposure in the fixed income segment to 20% compared to 8.4% previously.

As of December 2021, the fund had assets under management of close to RM9.7 billion. With an investment portfolio that spanned various asset classes and industries since 2019, LTAT has embarked on a five-year transformation plan, with the aspiration to be a world-class retirement fund that delivers competitive and sustainable dividends, and excellent customer service, with the ultimate objective of enhancing the wellbeing of the Malaysian armed and volunteer forces.

The immediate result of the transformation could be seen in the declaration of a 4.1% dividend to over 110,000 members for the fiscal year 2021, an increase from 3.5% in 2020 and the highest since 2018.