Malaysia’s Largest Pension Fund to Sell Columbia Asia Stake

Fund targets 4% global assets increase.

The Malaysian Employees Provident Fund, the country’s largest pension fund, plans to drop a large investment with a healthcare provider, according to the $209 billion fund’s 2017 annual report.

According to the report, investments in the hospital group are being reclassified as assets held for sale. The pension fund holds a 29.72% stake in Columbia Asia.

The fund’s Investment Panel approved the sale in November, the annual report said. The sale is expected to be completed by April 2018.

Terms of the deal and information on who the buyers are were not disclosed.

The large-scale pension plan will also be divesting 38 units of CIMB investment properties as well as a property at Petra Jaya, Sarawalk, later this year. Deal Street Asia reports that the fund holds a total of $152.6 million invested in these projects.

Despite the divestment plans, the Malaysian fund will add to its global investments. The fund’s global assets, while consisting of roughly one-third of total assets, was more than 40% of its 2017 gross investment income.

In the annual report, CEO Shahril Ridza Ridzuan said that the global portfolio’s target size will be raised to 32% of total assets as part of its “ongoing efforts to ensure appropriate diversification and risk management of our total portfolio.”

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