Tabung Haji to embark on three-year plan after restructuring

Tuesday, December 22, 2020

Lembaga Tabung Haji (TH) will embark on a three-year investment plan from 2021 after completing its restructuring exercise with the main focus of strategic asset allocation (SAA) primarily in fixed income, real estate and equity.

Investment executive director Hizamuddin Jamalluddin said the pilgrims' fund had set a new target based on the government-approved 3R initiatives namely to reshape, restructure and re-energise its investments portfolio in three years.

"We want to rehabilitate, build up our capability and the capacity of TH's investments and assets," he said at a press conference after signing the sales and purchase agreement with Damansara Development Sdn Bhd (BDD) here yesterday.

Hizamuddin said the 3R initiatives allowed TH to increase its assets allocation in fixed income, real estate and equity while reducing its exposure in the money market.

"Currently, TH's asset under management (AUM) stands at about RM80 billion. As for its current position as at December 16, 2020, 54 per cent (RM42.5 billion) is derived from Fixed Income (sukuk), contributing to stable and recurring income.

"22 per cent or RM17.3 billion are invested in the equity market, another 9.0 per cent in real estate amounting to RM7.1 billion while the remaining 15 per cent or RM12.7 billion are in the money market," he said.

Hizamuddin said TH aspire to achieve a new SAA with 58 per cent in fixed income, 11 per pent in real estates, 18 per cent in domestic equity, 5.0 per cent in global equity, 3.0 per cent in private equity and 5.0 per cent in the money market in the next three years.

Group managing director and chief executive officer Datuk Nik Mohd Hasyudeen Yusoff said TH's financial performance in the first half of 2020 was encouraging and the pilgrim fund's total deposits stood at RM75.58 billion as at November 30, 2020, the highest in history from nine million depositors.

"We are in the right trajectory. We try to do our best and seek for opportunities in real estate, equity and fixed income. 

"If our deposits increase, we must find investment opportunities so that we can deliver reasonable returns for depositors based on the current market performance. We also try to improve TH's governance following the Syariah-compliance.

"However, there are various challenges in terms of investment during the pandemic," he said, adding that this, in turn, would position TH as a role model for Islamic institutions to manage finances and improve the pilgrims' hajj management.

Nik Mohd said TH was also waiting for the Saudi's government explanation on its implementation for the Hajj's season next year. 

Meanwhile, TH bought over Menara VSQ 1 from Johor Corp Bhd's subsidiary Bukit BDD for RM147 million.

It comes with a guaranteed return of 5.5 per cent from TH's second approved property investment, based on the long-term rental agreement with the tenants.

The 20-storey office tower in Petaling Jaya is headquarters for QSR Brands, the food chain brand that operates KFC and Pizza Hut Malaysia.

Minister in the Prime Minister's Department (Religious Affairs) Datuk Seri Dr Zulkifli Mohamad Al-Bakri said the global market had been adversely affected by the Covid-19 pandemic, creating market uncertainty with the fluctuation in commodity prices.

"The government is committed to helping Malaysians to own properties through various schemes, policies and assistance for the infrastructure development.

"Hence, this will encourage more development in real estates and infrastructure in the country," he said.