When EPF Doesn't Want To Be The Elephant In The Bath.

Couldn't help but noticing, many local asset management & fund managers are aggressively promoting 'investing oversea' or 'investing globally' since last year. Something that I don't think really happened before. Citibank has its own column in a local newspaper talking about - global investing, our own local fund managers (Public Mutual for instance) start promoting their own oversea unit trust and EPF already talking about investing oversea since last year. I believe so more and more local unit trust company will have their own oversea fund. Its good for local investor to diversify their money but then its not the point why I posted these item here.

I read the newspaper yesterday "EPF to invest RM1.5b more overseas" (SUN 14 Dec 05) and what went in my mind, "How on earth we're going to woo foreign fund to invest in here if our own local fund start to invest oversea! ?

1.5B billion to invest oversea? That will added to the already RM1.9billion, approved by Bank Negara, totalling to RM3.4 billion. And later probably more and more. Is it a large amount? Probably not, relative to what hundreds of billion EPF currently has.

BTW, the announcement was proudly made by the party which will manage the fund; Aberdeen Asset Management 's local unit managing director Gerald Ambrose and he said EPF need to invest oversea in order not to become like "the elephant in the bath"

If the mother of all Malaysia fund start investing oversea then who's going to make the new buy on our market. Foreign fund will buy (tell me about it)? Is not that investing oversea is not good, its a great for diversification and opportunity but my concern is our own playground. Doesn't it reflect the lack of confidence in our market? Retail investor are waiting for EPF and local fund manager to show them a fresh lead but no, these market leader go oversea. What a lead we got!