LTAT set to go global, eyes US tech sector

ARMED Forces Fund Board (LTAT), the pension fund for Malaysia’s armed forces personnel, is awaiting approvals from the relevant authorities, including Bank Negara Malaysia, to invest overseas.

These approvals are expected this year, after which the fund plans to invest in several sectors, including the US tech sector, once “hot” but now viewed with caution by investors.

Interestingly, LTAT is currently the only government-linked investment company (GLIC) without a mandate to invest overseas.

Expanding abroad could benefit its shareholders, notwithstanding the inherent risks.

For example, the local benchmark FBM KLCI gained just over 2% in 2025, while overseas markets such as the S&P 500 rose nearly 18% (including dividends).

By not participating in overseas markets, LTAT is clearly missing out on higher returns.

The fund aims to increase allocations to public shares and fixed income to at least 20% each of total investments by 2030, up from 10.2% and 11.8%, respectively, as of end-2025.

Any overseas investments will require careful deliberation, given LTAT’s history of financial irregularities and governance challenges. The fund is now ready to move forward, and the last thing it needs is a misstep abroad.

This week, LTAT announced a dividend of 5.35% for financial year 2025, its highest payout in eight years, totalling RM524.74mil. Its combined reserves increased by 29.1% to RM1.31bil, compared with RM1.01bil a year earlier.

Total assets under management stood at RM13.36bil, down 2% year-on-year due to net withdrawals.

LTAT holds stakes in Affin Bank Bhd and Pharmaniaga Bhd, the latter on track to exit its Practice Note 17 financially distressed status.

Anchored by its strategic roadmap, Gempur30, covering 2026 to 2030, all eyes will be on LTAT as it progresses with its transformation.