EPF CEO: EPF will NOT consider investing in digital assets

EPF CEO: EPF will NOT consider investing in digital assets

Investing depends on personal appetite for risk

I could be very aggressive and I invest into a start-up which would most probably fail. However, if I invest into 10 of them, perhaps one of them could be a huge success; unicorn status. I could be very conservative and just put all my money into the Fixed Deposit in the bank and happily earning the interest every year. This is a personal decision and everyone can just decide what they want, take action and live with it. EPF is not an individual. I need EPF to continue to give me stable returns every year until after I retire. Period.

Article in nst.com The Employees Provident Fund (EPF) chief executive officer Ahmad Zulqarnain Onn said that EPF will continue to focus on cash-generating assets under its Strategic Asset Allocation (SAA) plan and will not consider investing in digital assets.

He said the retirement fund is going to continue to invest in relevant asset classes that are consistent with its prudent investment strategy.

“The simple answer to digital assets is a no as for the EPF, the cash generation factor is incredibly important for us when it comes to investment. Similarly, this is the same reason that we genuinely do not invest in commodities, because a commodity is a physical asset with no cash generation capabilities.”

On the ringgit’s performance, Ahmad Zulqarnain said the retirement fund is in sync with Bank Nagara Malaysia’s stance on the valuation of the ringgit. “We agree that the ringgit is undervalued, and for the EPF, it means purchasing more assets in ringgit.” Article in nst.com

EPF must continue to focus on investing into cash-generating assets yeah

Cash-generating assets means assets which after being bought, it will generate rental income for example. Or buying into businesses which are already providing a stable dividend year after year. Or buying into bonds with a guaranteed return. All these should continue to be the focus of EPF because this is not a unit trust fund which could be a super equity focused or even crypto-currency focus if there’s one. Unit trust is the decision of the investor and the investor can proceed to take the risk he / she needs. Not EPF yeah.

This is how the ‘blue-chip’ bitcoin price trend looks like

When we have a trend which could be up or down by double digits every now and then, let’s just leave it to the public to take the risk and either gain or lose yeah. EPF’s mandate is a simple one. It invests money of members who will need it when they retire. I cannot afford to have my EPF money floating up and down and just every other day. I need my attention on my working life and I do not need these additional worries.

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