Employees Provident Fund (EPF) has just declared a dividend of 5.8%t for 2010, up from 5.65 percent declared the year before, buoyed primarily by good performance in the equities market.
“The remarkable investment income achieved in 2010 was especially driven by the performance of equity investments,” said EPF Chairman Tan Sri Samsudin Osman in a statement on Sunday. “The improved financial and economic conditions provided the market with sufficient liquidity, allowing profit taking activities throughout the year.
“The dividend amount paid out is derived after deducting net impairment allowance on financial assets, investment expenses, operating expenditures and statutory charges as well as dividend on withdrawals,” he said.
EPF will be paying out a total of RM21.61bil to members, an increase from the 2009 dividend payout of RM19.37bil.
The dividend rate of 5.8 percent underscores an impressive year in which gross investment income reached a historical high of RM24.06bil, reflecting a 39.76 percent increase over the RM17.22bil gross investment income recorded in 2009, the statement said.
For the year under review, a total of RM10.94bil was earned from equities, a significant increase from RM4.85bil earned in 2009.
Loans and bonds were the second largest investment income contributor in 2010, recording RM7.02bil in gross investment income, compared to RM6.63bil posted the previous year. Malaysian Government Securities was the third largest income earner for the year contributing RM5.30bil compared to RM5.22bil in 2009.
The year 2010 saw about 2/3 of EPF’s total investment assets remaining in low-risk fixed income instruments with stable streams of income.
“As a retirement fund, our primary objective is the preservation of capital while at the same time adding value to members’ retirement savings. In pursuit of this objective, we will continue to adopt a prudent investment approach,” Samsudin said.
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