EPF revises unit trust funds list

PETALING JAYA: The Employees Provident Fund (EPF) has revised the list of unit trust funds for the next one year, in order to provide further protection for investors by screening out the bottom performers.
The latest list is effective from March 1, 2018 until February 28, 2019.
The pension fund said in a statement that for the 2018/2019 period, out of 367 funds approved under the EPF Members Investment Scheme (MIS), 268 funds from 22 Fund Management Institutions (FMIs) qualify for offering.
This compares with out of the 373 funds approved for the 2017/2018 period, 278 funds from 22 FMIs qualified for offering.
EPF deputy CEO (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 Ministry of Finance Malaysia.
"Any unit trust fund which falls below the minimum eligibility score will be suspended and will 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, which was introduced in 2010, was increased from 2.00 to 2.33 in 2017.
It is computed based on the fund's aggregate performance over a three-year period, and taking into account its performance against its 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 their 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% (from not more than 20% 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 also noted that the EPF is currently developing an electronic Members Investment Scheme Portal (e-MIS) where members may transact online at a reduced cost.