KUALA LUMPUR, March 25- The Employees Provident Fund is looking to expand its private equity investments in the emerging markets of Asean and China, given the markets’ rapid growth. Chairman Tan Sri Samsudin Osman said currently the fund has invested over two per cent of its total assets in private equities, amounting to about RM10 billion.
“On how much the two per cent will grow, very much depends on the outcome of our strategic asset allocation review, due later this year.
“We do expect it to increase and we’re giving a lot of importance to private equity,” he told a press conference at the EPF Global Private Equity Summit 2013.
Deputy Chief Executive Officer for Investment Datuk Shahril Ridzuan Ridza said while there is a lot of focus in this region, the fund would also invest in developed markets such as the United States and Europe.
“The financial crisis in developed markets in the last few years has given us opportunities to acquire assets at decent validations,” he said.
Shahril Ridzuan said the EPF generally favours companies which get their revenue directly from consumers, such as KFC and Plus, as well as utility companies. Meanwhile, during the summit, Carlyle Group Co-Chief Executive Officer and Co-founder David Rubenstein noted that huge opportunities in the private equity markets lie in emerging markets, with Asia being the largest.
“In terms of gross domestic product, emerging markets will surpass the developed markets, driven not only by its large population but also by its younger average age,” he said.
On challenges in the private equity market, Rubenstein said the macroeconomic environment continues to top the list, especially with a lot of uncertainty going on today.
“In the context of Asia, the growth rates issue mostly depends on China’s growth, which is the region’s growth engine,” he added.
BERNAMA
