Outsourcing investments to external fund managers (EFM) has been a longstanding practice in EPF. According to the annual report, about a quarter of 2015's investment income was attributed to EFMs. We ask the question of whether this is worth it.

Also EPF will be making a radical change to another kind of investment outsourcing. Members' optional unit trust investments will be put online to reduce/eliminated sales-related fees that can come up to 5%. We also question the principles behind doing this.

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Tags:  passive investing,  epf,  retirement planning,  pension funds,  defined contribution,  etfs,  low cost funds,  index funds,  fbmklci,  robo advisors