KUALA LUMPUR: The Employees Provident Fund (EPF) has outsourced a total of RM155.18 billion worth of investment assets to external fund managers, as at December 31, 2020.
The retirement fund manger said the allocation was invested across both equity and fixed income instruments, representing 15.55 per cent 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 were within the EPF's risk return objectives.
This is against the background of 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 well-being of our members, which is imperative in this difficult economic time," he said in a statement today.
The EPF has delivered a dividend rate of 5.20 per cent and 4.90 per cent for both Simpanan Konvensional and Simpanan Shariah, involving a payout of RM42.88 billion and RM4.76 billion, respectively.
Cumulatively, the total pay out for 2020 amounted to RM47.64 billion for the financial year, ended 2020.
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.