{"id":531564,"date":"2026-03-12T14:27:11","date_gmt":"2026-03-12T14:27:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/531564\/"},"modified":"2026-03-12T14:27:11","modified_gmt":"2026-03-12T14:27:11","slug":"armed-forces-pension-fund-targets-higher-exposure-to-liquid-assets","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/531564\/","title":{"rendered":"Armed Forces pension fund targets higher exposure to liquid assets"},"content":{"rendered":"<p>KUALA LUMPUR (March 12): Lembaga Tabung Angkatan Tentera, which manages the Malaysian armed forces\u2019 pension fund, plans to increase its exposure to more liquid assets to boost income.<\/p>\n<p>The fund aims to raise allocations to public equities and fixed income to at least 20% each by 2030, from 10.2% and 11.8% respectively as at end-2025, said Mohammad Ashraf Md Radzi, chief executive officer of the fund also known as LTAT.<\/p>\n<p>\u201cAs a retirement fund, our bread and butter is public market products,\u201d Ashraf told The Edge. \u201cWe need to grow our listed equities and traded fixed-income exposure&#8230;to reach a level where we have adequate recurring income and liquidity.\u201d<\/p>\n<p>The move forms part of LTAT\u2019s five-year strategic road map under Gempur30, which seeks to rebalance the fund\u2019s investment portfolio while strengthening its long-term sustainability.<\/p>\n<p>Assets deemed strategic accounted for 58.5% of LTAT\u2019s portfolio as at end-2025, making the segment the second-largest contributor to income at 19% among all asset classes.<\/p>\n<p><a class=\"mobx embedimg-icon\" data-rel=\"ceolightbox\" href=\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2026\/03\/ltat-dividend_20260312201542_pe73h5.jpg\"><img decoding=\"async\" alt=\"\" src=\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2026\/03\/ltat-dividend_20260312201542_pe73h5.jpg\"\/><\/a><\/p>\n<p>\u201cBy 2030, our goal is to reduce strategic assets to about 35%,\u201d Ashraf said.<\/p>\n<p>Overall in 2025, LTAT generated total investment income of RM749.49 million, with real assets contributing the largest share at 38%, or RM286.5 million. Strategic assets provided income of RM140.2 million and public equities RM139.9 million.\u00a0<\/p>\n<p>Under the transformation plan, LTAT intends to optimise and rebalance its portfolio through selective divestments and reinvestments, allowing capital to be redeployed into sectors with stronger long-term growth prospects and strategic relevance.<\/p>\n<p>Ashraf said the fund may undertake transactions involving some of its strategic holdings as part of the restructuring process, although details have yet to be finalised.<\/p>\n<p>\u201cWe need to go through the various processes for each identified one, but the idea is we will do it [on] a structured basis,\u201d he stressed.<\/p>\n<p>LTAT currently has total assets under management of RM13.36 billion, down 2% year-on-year, mainly due to net withdrawals and the absence of dividend income from Affin Bank Bhd (KL:<a href=\"https:\/\/theedgemalaysia.com\/askedge\/klse\/5185\" class=\"ce-stock\" target=\"_blank\" rel=\"nofollow noopener\">AFFIN<\/a>), one of the fund\u2019s main investments.<\/p>\n<p>The fund is the third-largest shareholder of Affin Bank, the country\u2019s second-smallest banking group by assets, with about a 22% stake, or 535.35 million shares, as of Feb 24.<\/p>\n<p>LTAT also has an indirect and direct stake of 43.9% in Pharmaniaga Bhd (KL:<a href=\"https:\/\/theedgemalaysia.com\/askedge\/klse\/7081\" class=\"ce-stock\" target=\"_blank\" rel=\"nofollow noopener\">PHARMA<\/a>), which is showing what Ashraf described as \u201cencouraging signs of recovery\u201d and on track to exit Practice Note 17, a status for financially distressed firms, in the near term.<\/p>\n<p>In total, LTAT declared a dividend of 5.35% for FY2025, its highest payout in eight years, amounting to a total distribution of RM524.74 million to contributors. The fund also saw its reserve fund increase to RM1.3 billion, compared with RM1 billion in 2024.<\/p>\n<p><a class=\"mobx embedimg-icon\" data-desc=\"Defence Minister Datuk Seri Mohamed Khaled Nordin\" data-rel=\"ceolightbox\" href=\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2026\/03\/1773284970237_20260312135226_theedgemalaysia_20260312135232_slmfr6.jpg\"><img decoding=\"async\" alt=\"\" src=\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2026\/03\/1773284970237_20260312135226_theedgemalaysia_20260312135232_slmfr6.jpg\"\/><\/a><\/p>\n<p>Defence Minister Datuk Seri Mohamed Khaled Nordin<\/p>\n<p>Defence Minister Datuk Seri Mohamed Khaled Nordin, who officiated the event, said LTAT\u2019s Gempur30 transformation road map will place the fund on a stronger footing to manage the retirement savings of Malaysia\u2019s armed forces personnel.<\/p>\n<p>\u201cWith the strategic plans that have been approved under Gempur30, we believe LTAT is on the right track to continue managing the savings of our armed forces members while delivering sustainable returns,&#8221; Mohamed Khaled said.\u00a0<\/p>\n<p>Read also:<br \/>&#13;<br \/>\n<a href=\"https:\/\/theedgemalaysia.com\/node\/795929\" target=\"_blank\" rel=\"nofollow noopener\">Malaysia\u2019s armed forces pension fund LTAT declares highest dividend in eight years at 5.35%<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"KUALA LUMPUR (March 12): Lembaga Tabung Angkatan Tentera, which manages the Malaysian armed forces\u2019 pension fund, plans to&hellip;\n","protected":false},"author":2,"featured_media":531565,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[45,49,48,133,131,132],"class_list":["post-531564","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-ca","tag-canada","tag-finance","tag-personal-finance","tag-personalfinance"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/531564","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=531564"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/531564\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/531565"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=531564"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=531564"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=531564"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}