[UPDATED] EPF declares 5.2% dividend, RM42.88 bil payout

KUALA LUMPUR – The Employees Provident Fund (EPF) has declared a dividend of 5.2% with a payout amounting to RM42.88 billion for Simpanan Konvensional, and 4.9% for Simpanan Shariah with a payout of RM4.76 billion.

The total payout for 2020 is RM47.64 billion, it said in a statement today.

“With an average five-year real dividend of 4.62% for Simpanan Konvensional and 4.32% for Simpanan Shariah after adjusting for inflation, EPF has exceeded its strategic target of declaring at least 2% real dividend on average for a rolling five-year basis.”

Chairman Tan Sri Ahmad Badri Mohd Zahir said EPF has been able to safeguard members’ retirement savings well, and at the same time, ensure their immediate needs are met to deal with challenges brought on by the Covid-19 pandemic.

“It was not easy at times, as we had to walk a tightrope to ensure our members survive this difficult period, while balancing their future needs.”

He said the fund posted a strong performance last year despite the twin economic and health crises.

It recorded its highest-ever gross investment income of RM60.98 billion, with RM6.15 billion allocated to Simpanan Shariah.

“The strong performance is due to the prudent approach taken, guided by the fund’s overall strategic asset allocation, which kept EPF resilient despite the unanticipated crisis,” said Badri.

“By asset class, fixed income instruments made up 46% of investments, while equities comprised 42%. Real estate and infrastructure, and money market instruments, made up 5% and 7%, respectively.”

As of last December, EPF had 33% of its overall investment assets outside Malaysia.

Equities, particularly foreign ones, continued to be the driver of returns, with a total income of RM28.71 billion.

While leading stock indices lost as much as 40% in the first quarter, EPF took the opportunity to rebalance its portfolio by acquiring fundamentally strong shares at attractive prices, said Badri.

“We took prudent measures to write down RM7.71 billion of listed equity portfolio, to ensure that the fund’s long-term investment portfolios remain healthy.

“During the year, EPF introduced withdrawal facilities, namely i-Lestari and i-Sinar, which required a robust liquidity plan.

“Hence, the money market portfolio grew significantly to cater to all the withdrawals. The income from the portfolio came in at RM1.19 billion.”

He added that overall investment assets grew 7.9% to RM998 billion, with the market value hitting RM1.02 trillion at year-end.

The fund’s membership base grew by 2% to 14.89 million, while the number of employers registered with it stands at 534,398. – Bernama, February 27, 2021