EPF Cuts Down Approved Unit Trust Funds Under MIS

The Employees Provident Fund (EPF) has trimmed the list of unit trust funds offered under its Members Investment Scheme (MIS) by 44 to 269.

The list was slashed due to EPF raising the minimum eligibility score of Simple Average Rating for Consistent Returns (SACR) to 2.33 from 2.00 to provide further protection for investors by screening out the bottom performers.

The unit trust funds approved for EPF MIS are evaluated every year based on a list of criteria set by the EPF and approved by the Ministry of Finance. Funds that fall below the minimum requirement will be suspended and will not be offered during the period.

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The latest list of 269 unit trusts from 22 fund management institutions (FMIs) is offered between March 1, 2017, and February 28, 2018.

This exercise saw equity funds were pared down to 146 from 175, mixed assets funds to 56 from 66 and bond funds to 36 from 41. Money market and property trust categories are left intact at 30 and one, respectively.

When SACR was introduced in 2010, EPF has informed the industry that the minimum eligibility score would be raised gradually to ensure the quality of funds offered under the scheme, said Datuk Mohamad Nasir Ab Latif, the deputy chief executive officer (investment) of EPF.

“We had raised the minimum eligibility score to 2.00 from 1.67 in 2013, and it is now timely to raise it to 2.33,” he said in a statement.

“The latest revised list also sees members having more variety of funds for their investment diversification following the removal of the 30% foreign exposures cap in August 2016. Members may now tap into funds with higher potential growth and opportunities present in foreign markets.”

Members of the EPF may view the fund information on the list of EPF approved funds via i-Akaun. This portal allows members to obtain information on unit trust funds offered under the scheme as well as FMIs managing these unit trust funds.

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