EPF i-Invest Online Platform (FAQ - Buying, Selling and Switching)

How do I invest in approved unit trust funds through the i-Akaun (member)

• Step 1: Log into your i-Akaun @ www.kwsp.gov.my
• Step 2: Click on the INVESTMENT tab.

Option 1: You have a particular fund in mind

• Step 3: Mouse over the TRANSACTIONS tab and click on the BUY tab. This page will also provide details of the Eligible Investment Amount and Available Investment Amount. Ensure that you have an Available Investment Amount of at least RM1,000.
• Step 4: Select the FMI and FUND NAME to invest and key in the investment amount. (Study the Fund Documents carefully to understand a fund’s risk and return profile. Click on the VIEW FUND INFO tab, then click on the FUND NAME to view the FUND DOCUMENTS.)
• Step 5: If you desire to invest in multiple unit trust funds, select another FUND NAME under the same FMI. You can only buy funds offered by the same FMI in a single transaction. Separate transactions must be executed if you want to invest in unit trust funds offered by different FMIs.
• Step 6: For each fund, enter an investment AMOUNT that is above the Minimum Investment Amount (or Minimum Subsequent Investment Amount). The Total Investment Amount for the fund(s) must be at least RM1,000.
• Step 7: Click on the PROCEED TO CHECKOUT button.
• Step 8: Click on the BUY button under the FMI or IUTA offering the selected unit trust fund(s).
• Step 9: After understanding and checking the disclaimer, click on the OK button. You will be redirected to the FMI/IUTA platform to complete the transaction.

Option 2: You want to analyse different funds before investing

• Step 3: Mouse over the FUND TOOLS tab and click on the FUND SELECTOR tab.
• Step 4: Filter the unit trust funds according to various criteria provided. Then, click on the GENERATE TABLE button.
• Step 5: Analyse the unit trust funds under different tabs. (Study the Fund Documents carefully under the FUND INFO TABLE tab to understand a fund’s risk and return profile.)
• Step 6: Select desired unit trust funds. You can only select funds offered by the same FMI in a single transaction.
• Step 7: Click on the BUY button at the bottom of the page.
• Step 8: For each fund, enter an investment AMOUNT that is above the Minimum Investment Amount (or Minimum Subsequent Investment Amount). The Total Investment Amount for the fund(s) must be at least RM1,000.
• Step 9: Click on the PROCEED TO CHECKOUT button.
• Step 10: Click on the BUY button under the FMI or IUTA offering the selected unit trust fund(s).
• Step 11: After understanding and checking the disclaimer, click on the OK button. You will be redirected to the FMI/IUTA platform to complete the transaction.

How do I sell or switch approved unit trust funds through i-Akaun (Member)?

• Step 1: Log into your i-Akaun @ www.kwsp.gov.my
• Step 2: Click on the INVESTMENT tab.
• Step 3: Mouse over the TRANSACTIONS tab and click on the REDEEM/SWITCH tab.
• Step 4: Select the unit trust fund(s) to redeem or switch. Members can only redeem/switch fund(s) offered by the same FMI or IUTA in a single transaction.
• Step 5: Click on the PROCEED TO REDEEM button or PROCEED TO SWITCH button.
• Step 6: After understanding and checking the disclaimer, click on the OK button. You will be redirected to the FMI/IUTA platform to complete the transaction.

Can I select multiple approved unit trust funds to buy/sell/switch through i-Akaun (Member) in a single transaction?
Buy: Yes. You can select multiple unit trust funds offered by the same FMI when transacting through the i-Akaun (Member), before being redirected to the FMI/IUTA platform to complete the transaction.

Sell: Yes. You can select multiple unit trust funds offered by the same FMI or IUTA when transacting through the i-Akaun (Member), before being redirected to the FMI/IUTA platform to complete the transaction.

Switch: Yes. You can select multiple unit trust funds offered by the same FMI or IUTA when transacting through the i-Akaun (Member), before being redirected to the FMI/IUTA platform to complete the transaction.

Additional requirements and/or fees/charges may apply when members are completing the transaction on the FMI/IUTA platform.

Can I switch between approved unit trust funds offered by different FMIs?

No. Switching is only allowed between funds offered by the same FMI, subject to a switching fee (if any).

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Analysis of newly launched United Global Healthcare Fund by UOB Malaysia

United Global Healthcare Fund

UOB Asset Management (Malaysia) Bhd has recently launched the United Global Healthcare Fund to provide Malaysian investors with opportunities for long-term capital growth through investments in global medical healthcare stocks. 

Fund Focus Area

Based on the Product Highlight Sheet, the fund aims to achieve the following:

United Global Healthcare Fund Investment Strategy

Fund Background

Despite being newly made available in Malaysia, the United Global Healthcare Fund is in fact an fund that was launched in 2000 and managed by UOB Asset Management Limited, Singapore. 

To understand the potential that this fund new fund is able to offer Malaysian investors, let's take a look at the historical performance of the same fund via data from Singapore.

Fund Performance

1) Total Return of Fund since Inception (August 2000)

Initial Investment Amount: RM 10,000.00 

Period of Investment: 19 years

Current Investment Value: RM 68,762.28 (15th August 2019)

Annualized (%) Return: ~10.6% per annum

United Global Healthcare Fund Performance Sg since August 2000

2) Total Return of Fund (10 Yr)

Initial Investment Amount: RM 10,000.00 (21 August 2009)

Period of Investment: 10 years

Current Investment Value: RM 37,842.10 (15 August 2019)

Annualized (%) Return: ~14.2% per annum

United Global Healthcare Fund Sg Performance (10 Years)

3) Total Return of Fund (5 Yr)

Initial Investment Amount: RM 10,000.00 (15 August 2014)

Period of Investment: 5 years

Current Investment Value: RM 18,707.01 (15 August 2019)

Annualized (%) Return: ~13.3% per annum

United Global Healthcare Fund Sg Performance (5 Years)

4) Total Return of Fund (3 Yr)

Initial Investment Amount: RM 10,000.00 (19 August 2016)

Period of Investment: 3 years

Current Investment Value: RM 12,171.77 (15 August 2019)

Annualized (%) Return: ~6.77% per annum

United Global Healthcare Fund Sg Performance (3 Years)

All in all, the double digit Annualized (%) Return for 19 years, 10 years and 5 years for this fund are pretty impressive. Next up is for us to get a holistic comparison in terms of investing into this fund versus investing into our own Malaysia Mid/Small Cap Equity funds.

Fund Comparison 

(United Global Healthcare Fund Sg vs Equity-Malaysia Mid/Small Cap funds)

The reasons Malaysia Equity Mid/Small cap category was chosen for comparison are due to the following:

• Funds in this category have been the best performing as compared to other categories
• Funds in this category are popular among Malaysians investors 

1) 10 Year Annualized (%) Return Comparison

Ranked by Annualized Return:

1. Eastspring Inv Small Cap Fund: 14.22% 
2. United Global Healthcare Fund (Sg): 14.2% 
3. Kenanga Growth Fund: 13.90%
4. Areca EquityTRUST: 13.37%
5. Manulife Investment Progress: 10.53%
6. Public Small Cap: 10.05%
7. Funds ranked 7 and below have only single digit annualized return (Total Funds: 23)

2) 5 Year Annualized (%) Return Comparison

Ranked by Annualized Return:

1. United Global Healthcare Fund (Sg): 13.3% 
2. Areca EquityTRUST: 8.87%
3. Hong Leong Penny Stock: 8.20%
4. Hong Leong Growth: 5.48%
5. Funds ranked 4 and below average less than 5% in annualized return (Total Funds: 23)

3) 3 Year Annualized (%) Return Comparison

Ranked by Annualized Return:

1. Areca EquityTRUST: 14.51%
2. Hong Leong Penny Stock: 7.97%
3. Hong Leong Growth: 7.96%
4. United Global Healthcare Fund (Sg): 6.77% 
5. Singular Value: 5.93%
6. Kenanga Malaysian Inc: 5.78%
7. KAF Tactical Fund: 5.64%
8. Funds ranked 4 and below average less than 5% in annualized return (Total Funds: 23)

Summary

As shown in the Fund Performance and Fund Comparison section of this post, the United Global Healthcare Fund (Sg) as well as the upcoming Malaysia version  will certainly be a great addition to any portfolio of investors in terms bringing in better than average returns. Exposure into the healthcare sector via this fund also provides a good diversification element to an investor's portfolio.

For further in-depth analysis/discussion of this fund in terms of resiliency towards market crashes, check out our discussion topic at The Guided Investor Forum under UT Funds Discussion Category

Cheers and Happy Investing!

EPF i-Invest Online Platform (FAQ - General)

This FAQ is taken from EPF's i-Invest portal and published as a form of reference for Malaysians who has yet to register an EPF i-Akaun. 

Registered members on the other hand may log-in to their EPF i-Akaun and and access all information at the i-Invest platform via the Investment tab.

What is an EPF i-Akaun?

i-Akaun is an online services portal provided EPF

What is an EPF i-Invest Online Platform?

An online portal that enables eligible members to invest directly in unit trust (UT) funds offered by EPF-approved fund management institutions. The i-Invest platform is accessible via the Investment Tab of an i-Akaun member. Features of this platform are:

• Information hub: You can access, analyse and compare useful information on Fund Management Institutions (FMIs) and approved unit trust funds, such as cost of investment, historical performance and statutory information.
• Efficiency: Real-time transactions and shorter end-to-end processes by eliminating the middle men.
• Flexibility: You can execute unlimited transactions (buy, sell or switch) at anytime from anywhere in the world on any number of approved unit trust funds offered by FMIs. If you are aged 55 and above, you can still utilise the i-Akaun (Member) to invest conveniently with FMIs. However, EPF releases control over such investments, as they are withdrawals from your Akaun 55 and/or Akaun Emas.
• Cost optimisation: Initial service charge capped at 0.5% through the i-Akaun (Member) versus 3.0% through agents.
• Functionality: You can view your consolidated Members Investment Scheme (MIS) investment holdings with detailed breakdowns by FMIs/IUTAs, approved unit trust funds and private mandate portfolios.

What is Members Investment Scheme (MIS)?

Members Investment Scheme (MIS) is an initiative by the EPF to provide investment options to members in enhancing their retirement savings. It allows only eligible members to voluntarily transfer a portion of their excess savings from EPF Account 1 to FMIs/IUTAs for eligible investments. The MIS was introduced in November 1996.

Am I eligible to invest through MIS?

You can invest through MIS if:

• Your EPF Account 1 savings exceed Basic Savings;
• You are aged below 55*; and
• You have an investment account with any FMI/IUTA

* If you are aged 55 and above, you can still utilise the i-Akaun (Member) to invest conveniently with FMIs/IUTAs. However, EPF releases control over such investments, as they are withdrawals from your Akaun 55 and/or Akaun Emas.

If you are a non-Malaysian, you are eligible to invest through MIS only if you registered with the EPF before 1 August 1998 or are a permanent resident.

What is Basic Savings?

It is the minimum level of savings you should have in your EPF Account 1. The minimum level increases with your age. If your EPF Account 1 balance is below your Basic Savings, you cannot invest through MIS. Click here for Basic Savings table.

How can I invest through MIS?

You can now invest through MIS using: (a) agents; or (b) the i-Akaun (Member). The Investment tab on the i-Akaun (Member) is an online, self-service function that does not require agents. As such, you may be charged higher fees when investing through agents versus the i-Akaun (Member).

How much can I invest through MIS?

You can invest your entire Available Investment Amount. After clicking on the Investment tab on the i-Akaun (Member), your Available Investment Amount is shown under the BUY tab. For further information:

Members aged below 55: 

• You can invest all your Available Investment Amount. Available investment amount = Eligible investment amount - Transferred amount.
• The Eligible Investment Amount is equivalent to 30% of any amount exceeding your Basic Savings. The transferred amount is the amount that has already been invested through MIS. 
• Furthermore, the minimum MIS investment amount is RM1,000. Therefore, the minimum savings in excess of Basic Savings required is RM3,333.34, such that RM3,333.34 x 30% = RM1,000.

Members aged 55-60: 

• Your Available Investment Amount is equivalent to almost the entire Akaun 55 balance; however, you must maintain at least RM1,000 in the account.
• Furthermore, the minimum withdrawal amount for investments with FMIs is RM1,000.

Members aged 60 and above: 

• Your Available Investment Amount is equivalent to almost the entire combined balances in your Akaun 55 and Akaun Emas; however, you must maintain at least RM1,000 in Akaun Emas.
• Furthermore, the minimum withdrawal amount for investments with FMIs is RM1,000.

All ages: 

• The minimum investment amount also depends on the chosen unit trust fund and whether the investment is an initial or subsequent one.

Example 1: 

If you are 30 years old, the Basic Savings is RM35,000. If your EPF Account 1 savings balance is RM50,000, the Eligible Investment Amount is: (RM50,000 - RM35,000) x 30% = RM4,500. 

If you have already invested RM2,000 through MIS within the current validity period, the Available Investment Amount is RM4,500 - RM2,000 = RM2,500, which is more than the minimum MIS investment amount of RM1,000. 

If the minimum fund investment amount is RM1,200, you must invest at least RM1,200 in the unit trust fund, up to a maximum of RM2,500.

Example 2: 

If you are 30 years old, the Basic Savings is RM35,000. If your EPF Account 1 savings balance is RM37,000, the Eligible Investment Amount is: (RM37,000 - RM35,000) x 30% = RM600. 

You cannot invest through MIS since RM600 is less than the minimum MIS investment amount of RM1,000.

What is the validity period?

After clicking on the Investment tab on the i-Akaun (Member), your validity period is shown under the BUY tab. For further information:

Your eligible and Available Investment Amounts are applicable for 3 months only, beginning from any attempted MIS transactions after the end of the last validity period (if any).

For example, if you attempt a MIS transaction on 4 January 2019, the validity period will be from 4 January 2019 to 3 April 2019. You may make as many transactions as you wish within this validity period, subject to the Available Investment Amount. After 3 April 2019, if you attempt a MIS transaction on 1 May 2019, the updated validity period will be from 1 May 2019 to 31 July 2019.

What is FMI?

A FMI is a fund management institution approved by the EPF to offer eligible investments to EPF members. FMIs are typically unit trust management companies (UTMCs) or asset management companies (AMCs). FMIs are governed by the EPF’s Guidelines on EPF MIS.

What is an IUTA

An IUTA or Institutional UTS Adviser is a corporation registered with FIMM that is authorised to market and distribute various unit trust funds of FMIs. When investing through the i-Akaun (Member), approved unit trust funds of certain FMIs can only be transacted through IUTA platforms (this is because the relevant FMIs do not have their own platforms that are connected to the i-Akaun (Member)).

When does the EPF release control

The EPF releases control over investments through MIS, subject to any other conditions, under the following scenarios:

1. You have attained the age of 55;
2. You have passed away and a full withdrawal of your EPF savings is made by your next-of-kin, beneficiaries and/or nominees;
3. You make a full withdrawal of your EPF savings due to physical or mental incapacitation that prevents employment;
4. You make a full withdrawal of your EPF savings as a non-Malaysian and are about to leave Malaysia; or
5. You make a full withdrawal of your EPF savings as a pensionable employee aged below 55 and are still employed with the Government of Malaysia, any State Government or any statutory or local authority.

What happens when EPF releases control

When the EPF releases control, you must deal directly with FMIs in relation to any investments previously made through MIS. If you redeem any investments, the proceeds cannot be deposited back into your EPF account(s), and must be deposited into your personal bank account. Kindly contact the relevant FMI for further clarification.

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EPF Approved Unit Trust Funds (Pdf Analysis + Excel Data Pack)

Contains:

• 7 years of unit trust fund performance data with specific annual return (%) from 2012 to 2018
• Analysis of fund performance for the following categories (equity-conventional funds, equity-islamic funds, mixed assets-conventional funds, mixed assets-islamic funds, bond funds and money market funds)
• 7 years back simulation of all investment into EPF approved unit trust funds versus EPF benchmark return in order to show which unit trust fund managed to outperform EPF return.
• Data Pack in excel format containing each individual fund data are provided for you to further analyze and back test any investment scenario.
• Compare your existing EPF invested Unit Trust fund against competing Unit Trust funds from other providers.

BUY NOW 

BUY the analysis and data pack:
https://shanesee03.wixsite.com/theguidedinvestor/online-store/EPF-Approved-Unit-Trust-Fund-Data-Pack-p146943645

 
Screenshots of the analysis and data pack:

Data Pack Excel File (sample)

Analysis of Data by Category (Sample 1)

Analysis of Data by Category (Sample 2)

EPF Investment Portfolio vs Unit Trust Portfolio, which one is better? (Part 3)

Background

Despite a difficult year in 2018, EPF still manage to generate a respectable dividend return of 6.15% for Conventional Savings and 5.90% for Syariah Savings. When majority of stocks and unit trust funds were red with losses in 2018, our every reliant pension fund manage to churn a single digit positive return for all of us

So what is the secret sauce of consistent return by EPF? 

EPF uses a long term investment strategy called Strategic Asset Allocation (SAA). SAA is an strategy that divides the investment portfolios of EPF into different assets classes to minimise risks, such as equities, fixed income, alternatives and cash

Apart from SAA which is use as a long term investment strategy, EPF also deploys two other strategies to manage medium and short term investment. The medium term strategy is called tactical asset allocation (TAA) and while the short term strategy is called dynamic asset allocation (DAA).

EPF's SAA strategy for 2017-2019, calls for the fund to invest up to 51% of its assets in bonds, 36% in stocks, 10% in real estate, and 3% in money markets. As well, up to 32% of its assets is to be invested abroad.

EPF's SAA in action

The effectiveness of SAA strategy can seen in the EPF's portfolio performance for 2017. Referencing EPF's 2017 annual report, I have summarized the portfolio allocation and performance of each asset class in the table below:

EPF 2017 Asset Allocation and Gross Income

Based on the table above, it is certainly very impressive for EPF to be able to generate returns of 11.46% for equities that is RM334 billion in size! The 8.55% returns from the Real Estate & Infrastructure portfolio can also be considered as above average. The SAA strategy also mandates a large amount of the portfolio to be allocated into MGS, Loans and Bonds, thereby creating a safety net for our savings.

It is also important to note the SAA strategy for 2017 allows EPF to venture into overseas investment. 28% of the total portfolio in 2017 have overseas exposure, contributing 41.45% of the Total Gross Income and generating returns of 10.83%.

All in all, EPF has done extremely well in terms of managing the risk of investing such a huge portfolio as well as ensuring that riskier investment (e.g equities) are able to generate the intended double digit returns.

Can a "Unit Trust" portfolio that mirrors EPF portfolio perform better?
Step 1: Generate EPF's Local and Foreign Portfolio Allocation 

In order to construct an EPF equivalent unit trust portfolio, I would need to determine what constitute the portfolio allocation of EPF towards local and foreign investment. While there is no official declaration of EPF with regards to the exact foreign investment within the asset classes, I have managed to collate information from local news publication in order to make an assumption:

"Of the 30 per cent invested oversea, 71 per cent is in listed equities, 13 per cent in fixed income and 16 per cent in alternative investment,” said Nasir."

The press statement above serves as basis of breaking down the 28% of total overseas portfolio for 2017 into assets classes as shown in the "simulated" table below:

Simulated EPF Portfolio for 2017

Step 2: Matching Unit Trust Categories to Simulated EPF Portfolio
The table below show matches the simulated EPF portfolio to Unit Trust Categories under Conventional and Shariah:

Matching EPF Portfolio to Unit Trust Categories

Step 3: Compare Unit Trust Fund Portfolio Returns versus EPF Returns for 2017
The Unit Trust Portfolio for Conventional and Islamic are constructed based on the fund returns  in 2017 as shown in the tables below:

Conventional Unit Trust Portfolio equivalent of EPF for 2017

Islamic Unit Trust Portfolio equivalent of EPF for 2017

The constructed Conventional Unit Trust Portfolio was able to generate returns of +12.35% while the Islamic portfolio returned +8.72%. In comparison to EPF's 2017 dividend of 6.90% for Conventional and 6.40% for Islamic, both unit trust portfolios were able to outperformed EPF.

Step 4: How does the same unit trust portfolio fare in 2018?
As mentioned earlier in this blog post, 2018 was a year of losses for equities which significantly impacted the performance of both unit trust portfolios as shown below:

Conventional Unit Trust Portfolio equivalent of EPF for 2018

Islamic Unit Trust Portfolio equivalent of EPF for 2018

A poor performing equity market clearly highlight the weakness of equity based unit trust funds in any portfolio. Such is the case for our simulated Unit Trust Portfolio equivalent of EPF where conventional and islamic portfolios only manage 0.01% and -1.81% respectively. 

If an investor is looking for consistent positive returns for the long run, the best option might be to remain invested into EPF where for 2018, dividend of +6.15% was declared for Conventional Savings and 5.90% for Islamic Savings.
Summary
I have also summarized in the table below the compounded returns over 2 years (2017 and 2018) for both the Unit Trust Portfolios versus EPF dividend return. 

Despite selecting the top performing unit trust funds to be included into the constructed portfolio, EPF compounded returns still outperformed the compounded returns of both Unit Trust portfolios over a period of two years. The consistency of EPF in producing positive return is unparalleled and jives with many Malaysians whom prefer consistent and stable returns for our live savings.

Never the less, unit trust will always be an option for investors with higher risk appetite. An experienced and knowledgeable investor would be able to apply the right strategy in order to take advantage of the various opportunities that arise from market and fund volatility. Huge double digit returns for an investor is totally possible as illustrated in the returns for the 2017 portfolio.

I hope this article has been an enlightening one in terms of helping investors to understand both EPF as well as Unit Trust. If you like this post, please feel free to share this and do follow me at Invest Made Easy Facebook for future updates!

Cheers and Happy Investing!

Join the discussion EPF versus UT Portfolio HERE