EPF members can buy trust funds up to 30% foreign portfolio

http://www.mysinchew.com/node/39973

2010-06-04 11:55

KUALA LUMPUR, Friday 4 June 2010 (Bernama) -- Unit trust funds with up to 30 percent foreign portfolio will be made available for sale to Employees Provident Fund (EPF) from August onwards, a move that will give more investible options to members.

Restricting them to purely domestic unit trust portfolio, without permitting them access to international diversification and growth potential, can hinder EPF members' ability to spread risk and to enhance returns, the Federation of Investment Managers Malaysia (FIMM) announced today.

However, only funds that meet the performance evaluation criteria that is set fo EPF-Members Investment Scheme (EPF-MIS) will be qualified, it said.

Among the criteria the funds must have a minimum three-year performance track record, FIMM president Tunku Datuk Ya'acob Tunku Tan Sri Abdullah told a press conference before the annual meeting here today.

Hence, newly-launched funds will not be offered under the scheme, he said.

MySinchew 2010.06.04

EPF members can buy unit trust with up to 30% foreign portfolio from August

Published: Friday June 4, 2010 MYT 12:55:00 PM
Updated: Friday June 4, 2010 MYT 1:26:48 PM
http://biz.thestar.com.my/news/story.asp?file=/2010/6/4/business/20100604125059&sec=business

By DALJIT DHESI

KUALA LUMPUR: Effective Aug 1, funds that have higher consistent returns for at least three years and those with a foreign portfolio component of up to 30% would be made available for sale to Employees Provident Fund (EPF) members.

This meant that funds with less than three years track record and newly launched ones would not be sold to EPF members.

Federation of Investment Managers Malaysia (FIMM) president Tunku Ya'acob Tunku Abdullah said the move would further instill trust and confidence in unit trust investment and enhance investment options.

To achieve the above objective, FIMM would introduce a performance focus methodology to measure funds under the EPF Members Investment Scheme annually.

From Left: Tunku Datuk Ya'acob Tan Sri Abdullah and Lee Siew Hong on Friday. - Starpic by Low Lay Phon

"Funds that consistently have higher performance relative to its peers in the same category will be made available for sale to EPF members. Those that generate returns but not as high as their peers and do not meet a certain criteria, will be suspended for sale.

"These funds can be re-instated when they eventually meet the criteria. The evaluation methodology for sale of funds as well as those with foreign exposure are expected to be implemented in August," he said at a press briefing.

Over RM20b disbursed for EPF members’ investment

Written by Surin Murugiah

Wednesday, 11 August 2010 12:22

KUALA LUMPUR: The Employees Provident Fund (EPF) has to date disbursed over RM20 billion to its appointed fund management institutions (FMIs) under the EPF Members' Investment Scheme since its launch in November 1996. Investment withdrawals are applicable to members who have at least RM5,000 over and above the basic savings required in Account 1 (retirement account), and have not reached 55 years of age. The basic savings required is dependent on the contributor's age and total funds in Account 1. The amount of savings that can be invested must not be less than RM1,000 and not more than 20% of the amount exceeding the required basic savings in Account 1. In an email reply to The Edge Financial Daily, the EPF's general manager for public relations Nik Affendi Jaafar said there were currently 37 FMIs appointed by the EPF under the scheme. He said in general, the performances of the respective funds and returns to investors had been mixed depending on the categories, strategies and objectives of the investments. "Naturally, some do tend to outperform the others," he said. The FMIs are categorised as unit trust fund managers and asset managers. This article appeared in The Edge Financial Daily, August 11, 2010.