EPF ( MALAYSIAN) PORTFOLIO?

The Employees Provident Fund (EPF) of Malaysia is a significant institution with a substantial portfolio, as indicated by the following points:

1. Size and Composition of the Portfolio:
   • The EPF has a substantial portfolio with assets under management (AuM) valued at approximately $217 billion as of the end of March 2023.
   • Domestic investments constitute about 63% of the portfolio, while overseas investments account for about 37%.
2. Investment Strategy and Performance:
   • The EPF's investment strategy includes Malaysian Government Securities and Equivalent, Equities, Loans and Bonds, and Money Market Instruments.
   • In 2023, the EPF achieved a dividend rate of 5.5% for conventional savings.
   • The EPF has set ambitious targets to transition to a sustainable investor, aiming for a fully ESG compliant portfolio by 2030 and a climate-neutral portfolio by 2050.
3. Recent Developments and Challenges:
   • The EPF has been increasing its domestic investments to 70% as directed by the Malaysian Prime Minister Anwar Ibrahim, which could pose challenges in terms of asset allocation and returns.
   • The EPF has also faced the challenge of maintaining good dividends while gradually raising overseas investments to enhance overall returns.
4. Social and Governance Considerations:
   • The EPF is committed to aligning its investment activities with broader societal interests, incorporating environmental, social, and governance (ESG) factors into its decision-making.
   • The EPF has released its GSR scoreboard, showing a GSR'23 score of 80%, reflecting its governance, sustainability, and resilience performance.

In summary, the EPF's portfolio is substantial, with a diversified mix of domestic and overseas investments. The fund is managed with a focus on sustainability and ESG considerations, while also aiming to achieve good financial returns. The recent shift towards increased domestic investments and the pursuit of sustainable investment targets are indicative of the EPF's proactive approach to managing its portfolio in a rapidly changing economic landscape.