KUALA LUMPUR: The Armed Forces Fund Board’s (LTAT) Strategic Plan 2023-2025 (Mampan25) launched today is expected to meet long-term targets including giving a minimum dividend of five per cent to its contributors among military personnel.
Chief executive officer Datuk Ahmad Nazim Abd Rahman (pix) said LTAT needs to be in a sustainable position to realise the matter during the period.
He said that for this purpose, LTAT will implement specific strategies and initiatives presented through four pillars, namely growth, resilience, impact and trust.
“LTAT needs to change its function from an investment fund to a retirement fund. Hence, we should ensure our investment in liquid assets such as fixed income and public equity (to grow) from 30 per cent to a minimum of 60 per cent.
“This means that we need to reduce our attention on companies (or) investment in companies like Boustead and groups in Boustead. That is the reason for us to ‘deconcentrate’ our investment in Boustead,” he told Bernama after the launch of Mampan25 here today.
Nazim said the focus would also be on improving LTAT’s investment performance by increasing assets under management (AUM) to RM15 billion from RM9.3 billion currently.
Additionally, LTAT would concentrate on extending benefits to contributors to meet various gaps in social well-being and digitalisation processes, supporting innovation and adopting future-of-work practices to create a high-performance work culture, he said.
“LTAT will also build a positive corporate image and brand that will lead to a positive trust index as well as a shift towards customer experience-based thinking when delivering services to contributors,” he said.
As such, he said LTAT would be able to recover the entire investment cost in Boustead amounting to RM3.3 billion and achieve a solvency ratio of at least 100 per cent at all times via Mampan25.
“The fund can also create portfolio diversification via reducing concentration in Boustead from 39 per cent to 15 per cent and growing AUM to RM15 billion from RM9.3 billion,“ he said.
Mampan25, launched today by Defence Minister Datuk Seri Mohamad Hasan, is a new direction for LTAT to face economic challenges, protect the social welfare of contributors and catalyse transformation towards a sustainable savings fund.
MAMPAN25 would also aim to restructure, reassess and relaunch LTAT’s business plan, as there are numerous issues that require re-evaluation and re-strategising efforts from the entire LTAT family, including its subsidiaries. -Bernama