EPF declares record 6pc dividend
Fund achieves best performance in a decade with RM27.2b profits
KUALA LUMPUR: THE Employees Provident Fund has declared a dividend of six per cent, the highest in a decade after achieving profits of RM27.24 billion last year.
EPF chairman Tan Sri Samsudin Osman said in a statement yesterday this meant a RM24.47 billion payout to members.
The dividend rate for 2010 was 5.8 per cent, while profits last year were up by 13.18 per cent.
He said despite the challenging investment landscape, it was EPF’s strongest performance since 2001 and affirmed its long-term and prudent investment strategy.
One of the highlights of EPF’s investments last year was the completion of the joint acquisition, with the UEM Group, of PLUS Expressway Bhd.
“In addition, we have expanded our global investment exposures in properties as well as equities and sukuk, which are in line with our investment objective and strategy guided by our strategic asset allocation and
risk-management framework.”
He said the dividend was derived after deducting net impairment allowance on financial assets, investment expenses, operating expenditures, statutory charges and dividend on withdrawals.
Equities were the largest income contributor at RM13.29 billion, representing 48.81 per cent of total income. This was followed by loans and bonds, Malaysian government securities and money market instruments which
contributed RM7.54 billion, RM5.63 billion and RM656.36 million respectively.
The balance of RM115.41 million or 0.43 per cent was contributed by property and miscellaneous investment income.
Samsudin said since its holdings were predominantly in fixed-income assets, the returns were influenced by interest rates.
Given the prevailing low interest environment, it was a challenge for EPF to maximise its returns.
"Therefore, we have gradually and cautiously moved into higher-yielding assets within tolerable risk limits. The strategies seem to bode well, as we managed to outperform the current fixed deposit and interest rates."
He said while its fixed-income investments provided stable returns, EPF's overall performance was attributed to gains realised in domestic and global public-listed equities as well as its active management programmes.
"This strong performance post-2008 financial crisis is testament to our commitment and disciplined approach to investment.
"While we cannot assure that we can maintain this performance amid global economic and market uncertainties, we are committed to safeguarding and adding value to our members' retirement savings, particularly against inflation."
As of Dec 31 last year, EPF's total investment assets continued to register a growth of 6.52 per cent to RM469.22 billion from RM440.52 billion in the previous year.
"This rise was primarily contributed by the positive net annual contributions from members and employers, and consistent investment performance."
In line with its focus on delivering steady returns for the long term, he said EPF continued to invest the bulk of its investment assets or 60.79 per cent in stable and conventional low risk fixed-income instruments.
Equities represented 35.64 per cent of assets while the remaining 3.18 per cent and 0.39 per cent were allocated for money market instruments and properties asset classes.
Samsudin said EPF anticipated the fund size would hit half a trillion by year-end or early next year.
Members may check their EPF account statements for the crediting of the 2011 dividend either through EPF kiosks, counters or iAkaun, starting today.
By V. SHANKAR GANESH
shanky@nst.com.my
KUALA LUMPUR: THE Employees Provident Fund has declared a dividend of six per cent, the highest in a decade after achieving profits of RM27.24 billion last year.
EPF chairman Tan Sri Samsudin Osman said in a statement yesterday this meant a RM24.47 billion payout to members.
He said despite the challenging investment landscape, it was EPF’s strongest performance since 2001 and affirmed its long-term and prudent investment strategy.
One of the highlights of EPF’s investments last year was the completion of the joint acquisition, with the UEM Group, of PLUS Expressway Bhd.
“In addition, we have expanded our global investment exposures in properties as well as equities and sukuk, which are in line with our investment objective and strategy guided by our strategic asset allocation and
risk-management framework.”
He said the dividend was derived after deducting net impairment allowance on financial assets, investment expenses, operating expenditures, statutory charges and dividend on withdrawals.
Equities were the largest income contributor at RM13.29 billion, representing 48.81 per cent of total income. This was followed by loans and bonds, Malaysian government securities and money market instruments which
contributed RM7.54 billion, RM5.63 billion and RM656.36 million respectively.
The balance of RM115.41 million or 0.43 per cent was contributed by property and miscellaneous investment income.
Samsudin said since its holdings were predominantly in fixed-income assets, the returns were influenced by interest rates.
Given the prevailing low interest environment, it was a challenge for EPF to maximise its returns.
"Therefore, we have gradually and cautiously moved into higher-yielding assets within tolerable risk limits. The strategies seem to bode well, as we managed to outperform the current fixed deposit and interest rates."
He said while its fixed-income investments provided stable returns, EPF's overall performance was attributed to gains realised in domestic and global public-listed equities as well as its active management programmes.
"This strong performance post-2008 financial crisis is testament to our commitment and disciplined approach to investment.
"While we cannot assure that we can maintain this performance amid global economic and market uncertainties, we are committed to safeguarding and adding value to our members' retirement savings, particularly against inflation."
As of Dec 31 last year, EPF's total investment assets continued to register a growth of 6.52 per cent to RM469.22 billion from RM440.52 billion in the previous year.
"This rise was primarily contributed by the positive net annual contributions from members and employers, and consistent investment performance."
In line with its focus on delivering steady returns for the long term, he said EPF continued to invest the bulk of its investment assets or 60.79 per cent in stable and conventional low risk fixed-income instruments.
Equities represented 35.64 per cent of assets while the remaining 3.18 per cent and 0.39 per cent were allocated for money market instruments and properties asset classes.
Samsudin said EPF anticipated the fund size would hit half a trillion by year-end or early next year.
Members may check their EPF account statements for the crediting of the 2011 dividend either through EPF kiosks, counters or iAkaun, starting today.
By V. SHANKAR GANESH
shanky@nst.com.my
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