Malaysia’s $216 billion fund looks overseas for higher gains

(July 1): Malaysia’s largest pension fund is investing more overseas as it seeks to beat the 4% to 5% return it has been achieving.

The Employees Provident Fund with about $216 billion in assets has been expanding its global portfolio to maintain high dividends for Malaysian workers in the face of limited opportunities onshore, Chief Executive Officer Alizakri Alias said in a Bloomberg TV interview with Haslinda Amin.

“The rate of growth for our fund is outgrowing the rate of the economic growth of Malaysia,” he said on Tuesday. “So whether we like it or not, we have to start looking overseas.”

The state fund currently has almost 30% of its investments placed overseas. Its assets rose 10.9% last year to 924.75 billion ringgit ($216 billion) as of the end of 2019.

https://www.theedgemarkets.com/article/mala...as-higher-gains

owh good. thnx 4 the link.

Its not a good time to invest outside of MY now
1. Should prop up MY economy
2. MY currency is low right now

That’s not EPF’s job to flex fiscal policy muscles. Their primary responsibilities are to safeguard Malaysians’ retirements.

It’s Bank Negara and federal government’s jobs to prop up the economy.

Yes and no.

It's right that government should prop up the economy. So, they rely on GLICs, i.e. EPF to invest domestically and boost the economy. You are back to square one.

Don't be too naive to think that EPF safeguards your retirements. (I used to think that EPF should protect your retirement savings too.) They are ultimately reporting to MoF, not you. See this book: https://forum.lowyat.net/index.php?showtopi...post&p=97154971 for more info.

(Ignore the debate of whether selling ASNB FP units with markup commissions is illegal over there. )

https://www.bloomberg.com/amp/news/articles...uarter-kc5u8uhh

The world’s biggest pension fund posted a record loss in the first three months of 2020 after the coronavirus pandemic sparked a global market rout in the period.

Japan’s Government Pension Investment Fund lost 11%, or 17.7 trillion yen ($164.7 billion), in the three months ended March, it said in Tokyo on Friday.

Anyone know how to view the exact figure of dividend received for 2019 at the portal?

View statement

Ah okay, just saw it at the table column. Thanks

Hopefully not happen to our epf.

YES,... I have to agree with this one,... I noted this too,... but now, I am caught a bit, I sent them out to Australia at a young age. I am not sure if I can't withdraw my SSPN contributions to finance their overseas education later in The US or Europe when they reach tertiary education level.

I hoped they don't lose money,... even Temasek lost a lot of money investing overseas. I do understand though, Temasek is NOT CPF.

Side note here : Predicted last month and recorded here in this thread that BNM will cut the Statutory Requirement Ratio (SRR) and the Overnight Policy Rate (OPR) by another 25 basis points at the meeting in July or August. Let's see if my predictions are correct,...

The July meeting shld be held around the first or second week of July every year,...

There are many previous postings including one recently mentioning that all (Preferably left RM20 inside) sspn money can be withdrawn anytime no question asked

I think there was an article in the news just few days ago mentioning something like 7 out of 12 "experts" expecting a 0.25% cut

Tq,... this is good news to me,...

I have another question,... back when I first applied to deposit for SSPN for my kids, there was mention that if we have a minimum of RM10k inside an SSPN Acct, the gov't will match this RM10k and 'give' us another RM10k as an incentive for us.

I remembered this was during the administration of Mr Abdullah Ahmad Badawi.

Is this RM10K incentive still being given ?

Ohh okay,... tq,... this round of my prediction was back in,... I think April or somewhere around then after the first cut for this year. They did cut, as per my prediction for that round too but my predicted quantum of cut was inaccurate.

SSPN-i incentives up to RM10,000 to continue for B40 group
Published 5 Oct 2019
https://www.malaysiakini.com/news/494534

This post has been edited by MUM: Jul 5 2020, 04:42 AM

Tq again this morning,...appreciated your time to dig-out the article for me.

I read some where most probably 50 bp because our economy now very very bad and inflation also low. So expected int will only 1.5% soon.

I wouldn't be surprised,.. tks bro,...

Prb is,... if they cut too low, the RM will depreciate further,...