Business

Wednesday November 11, 2009

Who is the new man who is going to make more money for the EPF?

By TEE LIN SAY


PETALING JAYA: Malaysian Resources Corp Bhd (MRCB) group managing director Shahril Ridza Ridzuan has been tipped to become chief investment officer (CIO) of the Employees Provident Fund (EPF), a post that has been left vacant since early this year.

According to sources, the announcement will be made as early as next week. Shahril, 39, will succeed Johari Muid.

MRCB executive director Datuk Ahmad Zaki Zahid looked set to take over the top position in the company, succeeding Shahril, sources said.

Zaki was appointed to the MRCB board in January 2005 and was redesignated as executive director in May this year.

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.

Observers say Shahril’s experience and track record of having turned around MRCB from a loss-making entity to a leading property and construction group and the visible success of the company’s flagship project KL Sentral development should hold him in good stead in his new job.

With an estimated gross development value of RM13.9bil upon completion in 2015, KL Sentral is the landmark development for MRCB, which currently has several ongoing projects with a total estimated gross development value of RM4.3bil.

MRCB’s majority shareholder is the EPF which has a 30.97% stake.

The EPF has generally invested a large portion of its money into fixed income, given that it is the safest option. But it has come at a price – returns or yields from fixed income has been relatively low.

As for equities, which makes up 20% to 25% of the fund’s investment portfolio, although the rewards can be relatively higher, so are the risks given the high volatility of equity prices.

With that in mind, the fund has been eager to expand its income by looking at alternative sources of investments while retaining capital preservation as its top priority.

 
MRCB :  [Stock Watch]  [News]


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