The Employees Provident Fund of Malaysia, which manages more than 600 billion ringit ($170 billion), will jointly invest in Malaysian logistics assets with Australian firm Goodman Group.
The two parties will jointly develop logistics assets worth 1.4 billion ringit as part of an effort to improve Malaysia's infrastructure and attract foreign investment.
The move reflects the Employees Provident Fund's aim to increase its allocation to real estate and infrastructure assets, which currently stands at 3% of its portfolio.
"Our commitment in this project is part of EPF's diversification programme to invest in inflation-linked assets," says the fund's deputy chief executive for investment, Encik Mohamad Nasir Ab Latif. "These asset classes were effective inflation hedging tools, befitting the fund's long-term objectives as a retirement fund."
The fund began its partnership with Goodman Group in 2012 with an investment in Australian infrastructure, followed by an investment in Germany the following year.
In a statement, the fund explains that it attempts to play "a catalytic role in the nation's economic growth".
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