KUALA LUMPUR: The Employees Provident Fund’s (EPF) investment decisions, including the trading of Malaysia Airports Holdings Bhd’s (MAHB) shares, align with its broader investment objectives and are aimed at generating income required for dividend payments during the financial year.
In a statement, EPF said the recent decision to make a voluntary general offer for MAHB’s shares at RM11 per share as part of a consortium reflects a separate, long-term strategic plan aimed at achieving sustainable growth and returns.
As an institution committed to good governance, the EPF also implements a Chinese Wall policy to ensure that its fund managers do not have access to any important non-public information such as acquisition offers that may occur.
“This policy serves as an information barrier between different departments within the EPF, preventing the disclosure of material non-public information and maintaining the integrity of its market activities,” it said.
Similar to many large institutional investors with Chinese Wall policies, the EPF separates teams that handle strategic partnerships or deal with confidential transactions, while a separate team manages investments in public equities.
The policy stipulates having a strict boundary between teams that have access to material non-public information and teams that deal in the public markets.
“This ensures that decisions made by fund managers are based solely on publicly available information, avoiding any unfair advantage or insider trading. This safeguards the integrity of EPF’s operations and maintains trust in its governance practices,” it added.
EPF has been an MAHB shareholder since Nov 30, 1999, when the company was listed on the Main Market of Bursa Malaysia at RM2.50 per share.
For 24 years, the EPF has managed its investments in MAHB based on a well-defined framework and a careful buy-and-sell strategy to ensure optimal returns for its members.
