KUALA LUMPUR, MALAYSIA - Malaysia's Employees Provident Fund (EPF) plans to outsource US$1 billion to eight external fund managers for its global fixed income mandates, local media reported on Tuesday, as the country's largest pension fund seeks to diversify its assets.

The Business Times cited EFP Chairman Samsudin Osman as saying that the state-linked fund would also channel 500 million ringgit to two fund managers as part of its domestic absolute return fixed income mandate.

"We will also be outsourcing additional funds to conventional and syariah equity mandates this year," Samsudin was quoted as saying.

EPF could not be immediately reached for comment on the report. The pension fund had 425.5 billion ringgit (US$141 billion) in assets as of end-September last year and is among the largest investors in the Malaysian stock market , holding stakes in almost every major listed company.

EPF's Deputy Chief Executive Shahril Ridza Ridzuan said the fund was aiming to increase its allocation to non-ringgit investments to 20 percent in three to four years from 10 percent of its assets at the end of last year. --REUTERS