In line with Malaysia’s aspiration to become a vibrant, regional asset management hub, this EPP targets assets under management (AUM) of RM1.6 trillion by 2020, representing a compounded annual growth rate (CAGR) of 17%. It will also encourage the growth of the retail market and develop a niche in the area of Islamic asset management.
To achieve its target, mandates from Government-linked Investment Companies (GLIC) to external fund managers will be increased from 5% to 15% of AUM, with an allocation of RM1 billion to RM2 billion for management by top fund managers.
- The Employees Provident Fund outsourced RM3.4 billion to external fund managers in 2014, of which US$350 million or RM1.106 billion was channelled into global equity mandates and US$300 million into global sukuk mandates.
- Financial authorities in Malaysia, Singapore and Thailand announced the launch of Collective Investment Schemes (CIS) in August 2014, a move that allowed fund managers to distribute retail investment products throughout the three nations.