KUALA LUMPUR : LEMBAGA Tabung Haji plans to raise its investments in the property sector as it seeks to generate more recurring income for its future sustainability. Tabung Haji's income now is mainly derived from equity trading, which was RM1.73 billion , or 42 per cent, from its total RM3.73 billion revenue for the year ended December 31 2013. Group managing director and chief executive officer Datuk Ismee Ismail said Tabung Haji will gradually reduce its reliance on equity trading and enhance its recurring income channels. "Other than fixed-income, our investment in the property sector has been generating recurring income for us. That is the reason the sector is important for our growth," he told a press conference, here, yesterday. "Equity (trading) too generates a recurring income in the form of dividends, and for that, Tabung Haji gives priority to companies with good dividend policy," Ismee added. Tabung Haji has allocated some 20 per cent of its fund to invest in the property sector. Its total fund in 2013 grew by 13 per cent to RM43.1 billion from RM38.3 billion before. He said Tabung Haji reviews its strategic asset allocation every three years and will maintain its allocation for property investment for now. "From the 20 per cent, which is equivalent to about RM8.6 billion , Tabung Haji has invested some RM6 billion . So, we still have a balance of about RM2 billion to invest this year," Ismee added. With investments in local and foreign properties at a 70:30 ratio, respectively, he said, Tabung Haji will continue its local focus, while keeping a close watch on foreign markets. Its foreign property investment portfolio includes the United Kingdom , Australia and Saudi Arabia. Ismee said with the right investment strategies, Tabung Haji is cautiously optimistic of maintaining its positive revenue trend. Group revenue grew 34 per cent in 2013 from RM2.8 billion a year earlier, while net profit jumped by 23 per cent to RM2.6 billion , compared with RM2.1 billion for the same period. "It is another record as this is the first time we surpassed the RM3 billion mark in revenue and secured more than RM2 billion in net profit for the second time in a row," he said. Meanwhile, Minister in the Prime Minister's Department Datuk Seri Jamil Khir Baharom said Tabung Haji's depositors will be receiving six per cent annual bonus and two per cent haj bonus. He said the annual bonus is competitive and is three percentage points above the rate for fixed-deposit accounts at Islamic and conventional banks. "Tabung Haji's bonus rate is competitive considering that its investment profile is limited as it is syariah-compliant, while savings are voluntary and without limit," Jamil said. The payout will be credited into the depositors' accounts on February 3 .
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