Tabung Haji investment strategy bears fruit
KUALA LUMPUR: Despite the flagging world economy and an ongoing trade war, the investment restructuring strategy adopted by Lembaga Tabung Haji (TH) since last year has saved the institution from being badly impacted.
TH group managing director and chief executive officer Datuk Nik Mohd Hasyudeen Yusoff said more than half of TH’s assets had been put in investments that provided more fixed income last year.
He said the move reduced the impact on the haj pilgrimage fund board in the financial market.
He added that TH had investments in stocks and equities, which is important as it will allow the agency to identify opportunities within a bear market.
“This provides an opportunity for institutions like TH to pick stocks that will, in the long run, provide good returns.
“As we invest more heavily in investments that provide higher assured returns, we can address the current financial market challenges,” Nik Mohd Hasyudeen said here on Friday.
On the TH’s distribution performance for the Financial Year 2019, he said, the 19 per cent increase showed that the institution was on the right track despite having to deal with economic uncertainties.
He said TH’s asset position and liabilities were also in good shape last year.
“TH’s total assets last year stood at RM74.3 billion, while its liabilities totalled RM71.4 billion. Its profit after zakat (tithes) for the Financial Year 2019 amounted to RM1.9 billion.
“This is a 19 per cent increase over the previous year,” Nik Mohd Hasyudeen said.
The haj pilgrimage board, on Friday, announced a profit distribution after zakat of 3.05 per cent for the financial year 2019, with a payout totalling RM2.1 billion compared with RM913 million in the Financial Year 2018.
TH attributed its improved financial performance to sustainable investments and prudent cost management, which led to the substantial growth in profit distribution compared with that of the previous year.