LTH aims RM50b fund size by year-end

by **Cals** Fri 14 Feb 2014, 08:36

Posted on 14 February 2014 - 05:38am

Ee Ann Nee
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PETALING JAYA (Feb 14, 2014): Lembaga Tabung Haji (LTH) expects to increase its fund size to RM50 billion by year-end, compared with RM43 billion in 2013, driven by the public's confidence in depositing in LTH.

Its group managing director and CEO Datuk Paduka Ismee Ismail said the Pilgrims' Fund Board now has 8.3 million depositors.

"Last year, we started the year at RM35 billion and closed the year at RM43 billion (fund size). I won't be surprise if we reach RM50 billion in the year-end," he told reporters after the launch of the corruption risk management plan workshop here yesterday, which was officiated by Malaysian Anti-Corruption Commission chief commissioner Tan Sri Abu Kassim Mohamed.

He added that growth of LTH has been driven by equities, fixed income, property and it will continue in that manner.

Ismee is upbeat on the property sector as a whole and in the long term, with opportunities both locally and abroad.

However, this does not mean that allocation for other investments such as equities and fixed income will be lesser.

"We're still using our current strategic allocation. If we need to review, we will, but at the moment, we've not not fully utilised our property asset allocation."

For this year, asset allocation for its investment portfolio consists of 40% in equities, 30% in fixed income and 20% in property.

Meanwhile, on the Revised Shariah Screening Methodology by the Securities Commission that will see the number of shariah-compliant securities cut to 653 of 914 companies listed on the stock exchange, companies are given six months (until May 31, 2014) to ensure they comply with the new criteria issued by the Shariah Advisory Council.

"We have a few (non-shariah compliant securities). We are studying it and up to this point, there would not be huge implications," said Ismee.