EPF announces 6% dividend, highest in decade

This is obviously to please the voters before the general election. It is also the result of a strong opposition. Vote in a new government and we may look forward to even better dividend for next year and the years to come - 1Christians

The Employees Provident Fund (EPF) today announced a six percent dividend for the year ended Dec 31, 2011.

EPF chairperson Samsudin Osman said in a press statement issued in Kuala Lumpur that it is the highest in the last 10 years.

Based on previous reports, the highest dividend announced by EPF was 8.5 percent, paid to subscribers from 1983 to 1987.

Samsudin said 2011 marked another commendable achievement for EPF, despite the challenging investment landscape, by posting a gross investment income of RM27.24 billion, an increase of 13.18 percent from 2010.

“It is the strongest performance since 2001, an affirmation of our long-term and prudent investment strategy, combined with continuous efforts by our investment team,” he said in a statement in Kuala Lumpur today.

While the fixed income investments provided stable returns, Samsudin said, the EPF’s overall performance was contributed by the gains in both the domestic and global public listed equities and management programmes.

As at Dec 31, 2011, he said EPF total investment assets continued to register healthy growth of 6.52 percent to RM469.22 billion, from RM440.52 billion in 2010.

“This rise is primarily contributed by the positive net annual contributions from members and employers, as well as consistent and encouraging investment performance,” he added.

He said equities formed the largest income contributor at RM13.29 billion or 48.81 percent of the total income from investments.

“This is followed by loans and bonds, Malaysian government securities and money market instruments, which contribute RM7.54 billion, RM5.63 billion and RM656.36 million, respectively.

“The balance of RM115.41 million or 0.43 percent is from property and other miscellaneous income,” he added.
Higher-yielding assets

Samsudin said EPF had gradually and cautiously moved into higher-yielding assets within tolerable risk limits.

“The strategy seems to bode well, in advance of our expectation as we managed to out-perform the current fixed deposit and interest rates,” he added.

He said one of the highlights of EPF investment activities in 2011 was the completion of the joint acquisition (with UEM Group) of Plus Expressway Berhad through co-investment vehicle, PLUS Malaysia Sdn Bhd.

“In addition, we have also expanded our global investment exposure in properties, as well as equities and Sukuks.

“These expansions are in line with our investment objective and strategy guided by our Strategic Asset Allocation and Risk Management Framework,” he added.

He said EPF members could check their account statement for the crediting of the 2011 dividend either through the EPF kiosks, counters or i-Akaun, from tomorrow.