RM117.5 billion outsourced to external fund managers, says EPF

KUALA LUMPUR: The Employees Provident Fund (EPF) says it outsourced a total of RM117.56 billion to external fund managers as of Dec 31, 2018, up 2.62% from RM114.56 billion in 2017.

EPF chairman Samsudin Osman said this allocation, invested across both equity and fixed income instruments, represented 14.10% of EPF’s total investment assets.

“As EPF’s fund size grows, we will continue to outsource a portion of our funds to external fund managers as part of our diversification programme and to better manage the performance of our assets,” he said in a statement.

Speaking at the EPF External Fund Managers Annual Awards 2019 yesterday, he said starting this year, the EPF’s newly formed External Fund Managers Department would streamline the monitoring of external fund management across equity and fixed income asset classes, to tap into external fund managers’ specialised knowledge, skill sets and exposure in order to deliver sustainable, value-added returns over the long run.

“The restructuring will provide greater clarity of the EPF’s external fund management activities and make it more effective to monitor performance and communicate and execute EPF’s investment strategies in line with its core investment philosophy of earning superior risk-adjusted returns with a long-term perspective,” he said.