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Corporate Moves

Malaysia’s Largest Pension Fund Names New CEO

Tunku Alizakri Alias will take over Shahril Ridza Ridzuan’s responsibilities at the end of the month.

By Chris Butera

Tunku Alizakri Alias will be new chief executive officer of Malaysia’s Employees Provident Fund, effective August 20.

Alizakri will replace Shahril Ridza Ridzuan, the $200 billion private sector plan’s current head, when he starts his new job as managing director at sovereign wealth fund Khazanah Nasional Berhad.

Khazanah announced Ridzuan’s move last week, following the resignations of Azman Mokhtar (the former head) and the rest of its nine-member board last month. The mass exit was a result of harsh criticism from Prime Minister Mahathir Mohamad, who will become Khazanah’s new chairman.

It is not known how many Khazanah resignation letters have been accepted, nor if any members will stay on the board.

The Provident Fund’s new chief, Alizakri, has been with the company since 2014, serving as deputy CEO of strategy. He currently oversees national policies on social protection and developments in the business’ products and services. Alizakri also looks after corporate strategy, corporate affairs, human capital, and talent development.

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He also sits on the pension’s management investment committee, which makes sure investment suggestions are in line with the Provident Fund’s governance and risk tolerance.

Tan Sri Samsudin Osman, the fund’s chairman, called Aliakri’s promotion “a validation of our robust succession planning which has enabled the minister of finance to choose a suitable internal candidate.”

Osman also expressed his appreciation for the departing CEO on his new gig.

“Though with a heavy heart, I am proud that Datuk Shahril has been appointed to take on greater challenges at Khazanah,” he said. “He has brought the EPF to new heights with strong dividends, enhancements to the EPF’s policies as well as improvements to the customer experience. Datuk Shahril is a prime example of dedication and professionalism.”

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Home > News > Research > Canadian Pension Plans Return 2.16% in Q2
Research

Canadian Pension Plans Return 2.16% in Q2

Despite positive returns, nearly all asset classes fell short of their benchmarks.

By Michael Katz

Canadian pension plan returns picked up the pace in the second quarter, rising 2.16%, after edging only 0.37% higher during the first quarter, according to BNY Mellon Global Risk Solutions.

It was the ninth straight quarter of positive results for the BNY Mellon Canadian Master Trust Universe, which also reported a one-year median return of 7.59%, and a 10-year annualized return of 7.14%.

The BNY Mellon Canadian Master Trust Universe results are based on C$242.9 billion ($186.9 billion) worth of investment assets in Canadian investment plans, with an average plan size of C$2.9 billion. The universe is intended to provide comparisons by plan type and size, and it comprises 83 Canadian corporate, public, and university pension plans.

Canadian universities posted a median return of 2.05% for the quarter, and a 2.45% return for the year to date, while Canadian foundations and endowments posted a median return of 2.61% for the quarter, and 2.46% since the start of 2018.

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Canadian and US equities were the top-performing asset classes for the quarter, with median returns of 5.48% and 5.24%, respectively, while non-Canadian and international equity medians returned 2.31% and 0.44%, respectively. Fixed income produced a median return of 0.74%, while emerging markets was the only asset class that posted a negative median return with a loss of 6.2%.

Although all but one equity segment had positive returns, nearly all trailed their benchmark index. Canadian equity’s 5.48% fell short of the S&P/TSX Composite Index return of 6.77%, while the US equity median quarterly return of 5.24% lagged behind the S&P 500 Index result of 5.54%. Non-Canadian equity’s 2.31% was well short of the MSCI World Index’s 4.00%, while international equity’s 0.44% was less than half the MSCI EAFE Index’s 1.05% return. And the loss of 6.2% from emerging markets equity was wider than the MSCI Emerging Markets index’s loss of 5.98%.

The fixed income asset class was the only one to beat its benchmark as the median return of 0.74% outperformed the FTSE TMX Canada Bond Universe Index return of 0.51%.

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