Wednesday, November 11, 2009


I baca with interest the latest post by BigDog

His focus was more on Zaki me that dude is a gone case....I don't understand why he is still around......

My bigger concern is the CIO position of EPF...this was extracted from the Star

"Sources said Shahril’s appointment as CIO of the retirement savings fund, which currently has over RM350bil in its coffers, would help expand EPF’s investments beyond the traditional asset classes of Malaysian Government Securities, loans and bonds and equities.

Historically, property made up less than 1% of the fund’s total investment portfolio.

“It is hoped that Shahril, given his experience in turning around and driving the property group over the years, will be able to steer and expand the fund’s investment in property as well as private equity, areas it has long wanted to expand into,” one source said."

Its domestic exposure is pretty large and faces a very high reinvestment risk of coupon incomes and also the incoming contributions in the next 10 years la... since our Super Freak Finance Minister have claimed that our income is gonna double by 2020...... guano mung ni Jib koho lamo koho napok bengong

What can this guy bring to the table in terms of Global Investment Strategy? in order to reduce the concentration risk of domestic exposure, taking into account the global imbalances....

Was MRCB an Investment House with a consistent track record of beating some form of Investment KPI like an Index?

What is EPF Investment Strategy does it plan to be more quantitatively driven into sexier(riskier) asset class? If the portfolio allocation for real estate is gonna be say 10% of total portfolio can this not be done via Outsourcing of the Portfolio Management Function to the professionals?

Why cant EPF move towards more outsourcing of its portfolio management and investment activities to the Domestic Fund managers and build proper portfolio monitoring system to track their activities according to the respective mandates?

Why cant EPF be the largest Lender of Security considering it is the largest holder of most domestic securities......the lending income alone can be pretty huge........

Coming back to the position....what can a Head of A Domestic Property Developer bring to the table besides meeting the basic statutory 4% rate? n watch out for his salary package is it gonna be tied to the portfolio performance.......will he be willing to take greater risk so that his pocket gets bigger while EPF depositors shoulder the full risk?

Nasib baik gua tak contribute to EPF....
Minds are like parachutes; they work best when open. -Lord Thomas Dewer