Bernama file photo for illustration purposes.
KUALA LUMPUR: The Employees Provident Fund (EPF) has approved 367 unit trust funds under the EPF Members Investment Scheme (EPF MIS) for 2018/2019.
In a statement, it said, under the EPF MIS, 268 funds from 22 List of Fund Management Institutions (FMIs) qualify for offering during the period.
As compared with 2017/2018, of the 373 funds approved, 278 were from 22 FMIs qualified for offering.
EPF today published the List of FMIs and unit trust funds that qualify for offering.
Deputy Chief Executive Officer (Investment), Datuk Mohamad Nasir Ab Latif said: “The list of unit trust funds offered under the EPF MIS is evaluated annually based on the criteria established by the EPF and approved by the Finance Ministry.
“Any unit trust fund which falls below the minimum eligibility score will be suspended and not be offered during the period.”
For the 2018/ 2019 offering period, the minimum eligibility score of Simple Average Rating for Consistent Returns (SACR) remains at 2.33.
The SACR, introduced in 2010, was increased from 2.00 to 2.33 in 2017 to provide further protection for investors by screening out the bottom performers.
It is computed based on the fund’s aggregate performance over a three-year period, and takes into account performance against peers.
The EPF MIS allows members to transfer part of their savings from Account 1 for investments through the appointed FMIs as an option and flexibility to diversify their retirement portfolio and enhance retirement savings.
Members who meet the Basic Savings requirement may transfer part of their savings from Account 1 into FMIs of their choice.
The amount for transfer had been revised upward to not more than 30 per cent (from not more than 20 per cent previously) every three months from the savings in excess of the Basic Savings amount in Account 1. The Basic Savings is a pre-determined amount set according to age in Account 1 to ensure members have at least RM228,000 upon reaching age 55.
The Basic Savings quantum is benchmarked against the minimum pension of RM950 per month for 20 years from 55 to 75 years old.
Mohamad Nasir said, effective 2017, the 30 per cent foreign exposure cap on investments undertaken by FMIs had been removed to provide an option for participating members wishing to tap into funds with higher potential growth and opportunities present in foreign markets.
This revision was to meet changing members’ expectations as well as taking into account developments in the fund management industry.
The EPF is currently developing an electronic Members Investment Scheme Portal (e-MIS) where members may transact online at a reduced cost.
This facility will provide greater flexibility, functionality and convenience for members to invest in unit trusts.
The e-MIS platform will also provide better access and visibility of available funds, prices and performance within the MIS scheme, so that members can compare and make a well informed investment decision, that suits their needs and risk appetite,” Mohamad Nasir said, adding, the online facility is set to be introduced by end-2019.
Currently, members may also utilise the Fund Information Portal which can be accessed via i-Akaun.
The portal is for members to obtain information on unit trust funds offered under the scheme as well as FMIs managing it.
With this, members can conduct their own research in making an informed investment decision.
Members are reminded that investments via the EPF MIS are voluntary and they are to assume full responsibility over their decision to participate in the scheme.
The EPF encourages members to seek advice from qualified financial advisers before deciding to participate, as the EPF does not make any recommendations or suggestions, on any of the unit trust funds.
To safeguard the integrity of the scheme and the interest of investing members, the EPF has issued guidelines to be complied with by FMIs to ensure they carry out their duties diligently and responsibly.
An independent auditor has been appointed by the EPF to carry out an annual audit on the FMIs.
The EPF may issue warnings, fines, suspension or even revocation of appointment if an FMI fails to comply with the instructions or guidelines issued. – Bernama