PETALING JAYA – Lembaga Tabung Haji (TH) will focus on new asset allocations, with plans to embark on what it calls a “3R” investment strategy – reshape, restructure and re-energise.
TH investment executive director Hizamuddin Jamalluddin said this is continue providing the pilgrims’ fund with a stable and recurring income, adding that TH’s strength relied on strategic asset allocation.
He said that after its restructuring, the fund had focused its allocations on four asset classes, namely money market, fixed income instrument, equity, and real estate.
“Currently, TH’s assets under management amounted to about RM79 billion whereby 54% are allocated to fixed income comprising bonds and sukuk.
“A further 22% or RM17.26 billion are invested in the equity market particularly in sustainable stocks, and 9% in real estate amounting to RM7.09 billion while the balance 15% or RM12.7 billion are in the money market,” he said.
He noted that in the next three years, the government has approved TH’s new asset allocations of fixed income at 58%, property (11%), domestic equity (18%), global equity (5%), private equity (3%), and money market 5%.
Meanwhile, TH today inked an agreement with Johor Corporation’s (JCorp) wholly-owned subsidiary to purchase a 20-storey office building, Menara VSQ 1, located in Petaling Jaya for RM147 million.
TH managing director and chief executive officer Datuk Nik Mohd Hasyudeen Yusoff said the new real estate investment was expected to generate 5.5% returns on the back of full occupancy and long-term rental agreement.
“As a depositor trustee, TH will continue to look for opportunities in making new investments directly or indirectly to increase its property portfolio which can provide recurring and stable income.
“This also gives a sustainable return to nine million depositors with total deposits as of November this year of RM75.58 billion, the highest amount achieved so far,” he told reporters at the purchase agreement signing ceremony today.
Minister in the Prime Minister's Department in charge of Religious Affairs Datuk Zulkifli Mohamad Al-Bakri witnessed the ceremony which was also attended by TH chairman Tan Sri Md Nor Yusof and JCorp president and chief executive Datuk Syed Mohamed Syed Ibrahim.
Nik Hasyudeen said TH is currently on the right track with its assets surpassing liabilities, but in the prevailing economic situation whereby the economy is being impacted by the COVID-19 pandemic, the pilgrims fund will remain cautious with its investment prospects. – Bernama, December 21, 2020
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