Last updated : 3/7/19 3:37 PM     

EPF Revises List Of Unit Trust Funds For 2019/2020

KUALA LUMPUR, 28 February 2019: The Employees Provident Fund (EPF) has published its Annual Qualifying List of Fund Management Institutions (FMIs) and unit trust funds under the EPF Members Investment Scheme (EPF MIS) effective 1 March 2019 until 29 February 2020.

 

For the 2019/2020 period, a total of 382 funds were approved under the EPF MIS, nonetheless only 282 funds, including 9 new funds, from 19 FMIs qualified for offering. This is a marginal increase of 0.7 per cent from the same period last year.

 

EPF Deputy Chief Executive Officer (Investment) Dato’ Mohamad Nasir Ab Latif said, “The list of unit trust funds offered under the EPF MIS is evaluated annually based on criteria established by the EPF and approved by the Ministry of Finance Malaysia.

 

“Any unit trust fund which falls below the minimum eligibility score will be suspended from offering during the period.”

 

Table 1: The List of Funds and FMIs by Category

 

Fund

Category

2018/2019

 (As at 28 February 2019)

2019/2020

(Effective 1 March 2019)

Qualified Funds

FMIs

Qualified Funds

FMIs

Equity

146

19

155

17

Mixed Assets

74

16

73

16

Bond

34

11

28

9

Money Market

25

17

25

17

Property Trust

1

1

1

1

 

280

-

282

-

 

 

 

 

 

 

 

 

 

 

 

The minimum eligibility score of Simple Average Rating for Consistent Returns (SACR) is maintained at 2.33 rating for three consecutive years. 26 per cent of approved funds which fell short of the rating have been suspended from offering this year.

 

The EPF MIS was introduced as an option for members to invest a portion of their EPF Account 1 savings in unit trust funds or via private mandates managed by the appointed FMIs. Based on their respective age (Refer to Table 2), members may transfer from their EPF Account 1 up to 30 per cent of the amount in excess of Basic Savings to be invested in the qualified funds.

 

Dato’ Mohamad Nasir said, “With the revision in the quantum of Basic Savings from RM228,000 to RM240,000 at Age 55 effective 1 January 2019, members will now accordingly be required to have higher savings in their EPF account in order to be eligible to participate in the EPF MIS.” The new quantum is benchmarked against the minimum pension for public sector employees, which has been raised from RM950 to RM1,000 per month.

 

Furthermore, he adds, the EPF is currently developing an electronic Members Investment Scheme Platform (e-MIS) which will enable members to transact online at reduced cost. This facility is expected to provide greater flexibility, functionality and convenience for members to invest in unit trusts.

 

The online facility, which is set to be introduced by the end of this year, will also provide better access and visibility of available funds, prices and performance within the MIS scheme so that they can compare and make informed investment decisions that suit their respective needs and risk appetite.

 

Members are reminded that investments via the EPF MIS are on voluntary basis and members will assume full responsibility over their decisions to participate in the scheme.

 

“Even though the EPF has approved these unit trust funds, it does not imply that we are making any recommendations or suggestions for members on any of the unit trust funds. We strongly encourage members to seek advice from qualified financial advisers before deciding to participate in the scheme,” adds Dato’ Mohamad Nasir.

 

The EPF has issued guidelines to be complied by FMIs as a measure to safeguard the integrity of the scheme and the interest of participating members, as well as to ensure the FMIs to carry out their duties diligently and responsibly. In addition, an independent auditor has been appointed by the EPF to carry out annual audit on the FMIs. The EPF may issue warnings, fines, suspension or even revocation of appointment should any of the FMIs fail to comply with the instructions or guidelines issued.

 

For the full list of funds offered under each appointed FMI, members may refer to the
myEPF website at http://www.kwsp.gov.my/member/investment.

 

Table 2: The New Basic Savings Schedule According to Age

 

AGE

BASIC SAVINGS QUANTUM

AGE

BASIC SAVINGS QUANTUM

 18

2,000

37

68,000

19

4,000

38

74,000

20

6,000

39

80,000

21

8,000

40

86,000

22

10,000

41

93,000

23

13,000

42

101,000

24

15,000

43

108,000

25

18,000

44

116,000

26

21,000

45

125,000

27

24,000

46

134,000

28

27,000

47

144,000

29

31,000

48

154,000

30

35,000

49

164,000

31

39,000

50

175,000

32

43,000

51

187,000

33

47,000

52

199,000

34

52,000

53

212,000

35

57,000

54

226,000

36

62,000

55

240,000

 

 

About the Employees Provident Fund (EPF)

The Employees Provident Fund (EPF) is Malaysia’s premier retirement savings fund to help its members achieve adequate savings for a comfortable retirement. This is in line with EPF’s vision to help members achieve a better future and the mission to safeguard members’ savings and deliver excellent services. The EPF has evolved significantly from transaction-centric to a professional fund management organisation with a strong focus on retirement security. The EPF is guided by a robust and professional governance framework when making investment decisions. It continues to play a catalytic role in the nation’s economic growth and seeks to cultivate a savings and investment culture among its members to improve the country’s financial literacy level.