EPF comfortable with overseas investments

KUALA LUMPUR (May 25): The Employees Provident Fund (EPF) is cautious but comfortable with its portfolio of investment exposures overseas amid the current financial crisis in the eurozone.

CEO Tan Sri Azlan Zainol said the fund will continue to invest abroad, and overseas investments currently make up 10% of its investment portfolio.

He said the government has authorised the EPF to invest up to 23% of its total portfolio overseas and to date it has just invested about half of the authorised amount.

"If the market is not that favourable it gives a chance, and when shares fall, there's a chance to buy again," Azlan, the chairman of Malaysian Resources Corp Bhd (MRCB), told reporters at the opening of Platinum Sentral in KL Sentral by the Kuala Lumpur mayor Tan Sri Ahmad Fuad Ismail.

Azlan said: "Shares fluctuate. We think if the situation in Europe becomes a big problem, we will also be very careful with our investments," he said when asked whether EPF would trim down overseas investments due to the euro debt crisis.

It was reported that the EPF, with RM470 billion in assets, is planning to increase overseas investments to 30% by 2017.

The retirement fund's assets are currently invested onshore, primarily in government bonds. It also has investments in the UK, the US, Japan and in the Australian stock market.

Platinum Sentral is the latest completed office development at Kuala Lumpur Sentral central business district, which was fully developed by MRCB.

It is the first Platinum-rated building in Malaysia and Green Building Index certified. — Bernama