CEO Ahmad Nazim said one of the main goals of the plan is to transform LTAT into a sustainable provident fund.
PETALING JAYA: The Armed Force Fund Board or Lembaga Tabung Angkatan Tentera (LTAT) aims to become a sustainable provident fund through the launch of its new strategic plan from 2023 to 2025.
Besides the plan, LTAT also announced its commitment to provide a competitive annual dividend of 5% to its members.
LTAT chief executive Datuk Ahmad Nazim Abd Rahman said one of the main goals of the plan is to transform it into a sustainable provident fund.
The decision was made following the privatisation of Boustead Holdings Bhd (BHB) for RM703.2mil or 85.5 sen per share.
According to Ahmad Nazim, the group aims to achieve its end goals of recovering investment costs in BHB, maintain solvency ratio of at least 100%, create a diversified portfolio by deconcentrating Boustead and increasing its assets under management (AUM) to RM15bil.
The plan has set four thrusts, namely growth, resilience, impact and trust. All of them are expected to be executed within three years.
Ahmad Nazim said the first thrust aims to grow funds to sustain a competitive return for its members, in which LTAT will focus on enhancing its investment performance leading to an AUM target of RM15bil from its current RM9.3bil.
As for resilience, LTAT aims to safeguard the future of funds by ensuring the strategic asset allocation targets are achieved, including having liquid assets of more than 60% through rigorous asset rebalancing, as well as liability matching.
“In bolstering resilience, LTAT will also embark on the sustainability journey holistically, encompassing the full spectrum of environmental, social and governance aspects, with the full adoption of sustainable investing standards by 2025,” he added.
On creating impact and trust, LTAT aims to address the gaps of the social protection system and will focus on building a positive institutional image and brand.
“This will lead to a net positive trust index and shift LTAT towards a customer experience mindset,” Ahmad Nazim said during the launch of the plan yesterday.
He said the plan is a testament to LTAT’s readiness to advance into the next phase of growth.
“The plan will bring us forward in a holistic and concerted manner, discharging our duties in a way that meets the various needs of our stakeholders,” he said.
“The new vision and mission, supported by various strategies, will drive LTAT towards sustainable financial performance and create a lasting positive impact to the contributors.”
Ahmad Nazim said that this would also propel LTAT to become a valued contributor to the country’s economic development.
Officiating the launch, Defence Minister Datuk Seri Mohamad Hasan said LTAT should place an emphasis on the money belonging to its members and not the fund managers.
“It’s alright if you do not get much in return. I am happy if we get even 5% every year,” Mohamad said.
