EPF declares highest dividend for 2012

  • DAP to decide next week who will run in Bukit Gelugor by-election
    DAP to decide next week who will run in Bukit Gelugor by-election

    The DAP central executive committee will discuss candidature of the Bukit Gelugor parliamentary seat for the upcoming by-election when it meets next Monday. Its secretary-general Lim Guan Eng said party leaders have, in the meantime, been told to refrain from making any announcement on the by-election to avoid distortion by mainstream media.... …

  • Don’t forget Pakatan’s common agenda, DAP reminds PAS as hudud row escalates
    Don’t forget Pakatan’s common agenda, DAP reminds PAS as hudud row escalates

    DAP will not bow to threats and will continue to resist the implementation of hudud as it is clearly unconstitutional, a party lawmaker said today. Puchong MP Gobind Singh Deo (pic) said the party's stand on the Islamic penal law would not waver, especially as it was against the Pakatan Rakyat agenda. Gobind's father, the late Bukit Gelugor... …

  • Jalan Bukit Bintang stretch closed to traffic from today
    Jalan Bukit Bintang stretch closed to traffic from today

    The 500m stretch of Jalan Bukit Bintang between Chulan Square and Menara Worldwide will be closed to all traffic beginning today. Mass Rapid Transit Corporation Sdn Bhd (MRT Corp), in a statement today, said the closure was because of road rectification works following the detection of a depression beneath the pedestrian walkway in Jalan Bukit... …

  • KLIA2 found up to the mark, says Hisham

    The International Civil Aviation Organisation (ICAO) has found the Kuala Lumpur International Airport 2 (KLIA2) to be safe and that it meets international standards, says Acting Transport Minister Hishammuddin Hussein.   He said ICAO had prepared a preliminary technical audit report on April 18 and it had been tabled to the cabinet yesterday.   "I think we are on track and it makes me proud to say that what we have promised the public - that KLIA2 will open as scheduled - will happen," he said …

  • Dropping Tony Pua from forum will cost BN youth support, says former MCA veep
    Dropping Tony Pua from forum will cost BN youth support, says former MCA veep

    A former MCA vice-president has spoken out against the move by the Malaysia Summit Australia (MASA) Conference to drop opposition lawmaker Tony Pua from the forum, saying that it would cost Barisan Nasional crucial support from youths. In a series of tweets, Gan Ping Sieu (pic) said barring opposition leaders from the Pakatan Rakyat pact would... …

  • Search for MH370 looks set for next phase, says report
    Search for MH370 looks set for next phase, says report

    After almost seven fruitless week of searching for Malaysia Airlines flight MH370, international agencies involved in the hunt are negotiating how to manage the next phase of the operation, The Wall Street Journal (WSJ) said in a report. Malaysian and Australian officials are said to be hammering out a new agreement that will set out critical... …

KUALA LUMPUR: As a result of its long-term investment strategy and prudent approach, the Employees Provident Fund (EPF) Board, with the approval of the Minister of Finance, yesterday declared a dividend rate of 6.15 per cent for the financial year ended Dec 31, 2012.

The dividend rate, an increase of 15 basis points over the 6.00 per cent rate paid out in 2011, translates to a record-breaking total of RM27.45 billion being distributed to its members, an increase of 12.20 per cent over RM24.47 billion paid out in the previous year.

"Notwithstanding the increasingly complex investment environment, the EPF maintained its steady upwards momentum to post its strongest set of results since the turn of the millennium, underpinning the effectiveness of its long-term investment strategy as well as its disciplined and prudent approach," said EPF chairman Tan Sri Samsudin Osman in a statement.

In 2012, the EPF posted its highest gross investment income to date of RM31.02 billion, up 13.91 per cent from 2011.

The highest-ever dividend payout of RM27.45 billion was derived after deducting investment expenses, operating expenditures, statutory charges and net impairment allowance on financial assets.

The EPF's main objective is the protection of members' capital by generating a return that beats the rate of inflation, Samsudin said.

"We continue to fulfil this commitment year-on-year through our Strategic Asset Allocation (SAA) which seeks consistent returns in the long term within tolerable risk limits for each asset class," he said.

Consistent with its SAA, the bulk of the fund's investment assets continue to be in stable and traditional low risk fixed income instruments.

Equities made up 38.77 per cent of total investment assets for the year, while the remaining 3.59 per cent and 2.42 per cent were allocated for Money Market Instruments and Real Estate and Infrastructure asset classes, respectively.

"Despite being a diversified fund predominantly invested in low risk fixed income instruments, EPF's annual return on investment (ROI) has topped six per cent for the third year running," he said.

Samsudin explained that equities generated a double digit ROI of 10.06 per cent while returns from fixed income instruments exceeded 5.50 per cent in spite of the current low interest rate conditions.

Due to a number of one-off capital market transactions undertaken, Loans and Bonds showed the highest increase in year-on-year income.

Investment in this asset class contributed RM9.68 billion to gross investment income, up 33.62 per cent or RM2.44 billion compared to 2011.

In view of the prevailing low interest rate environment, Samsudin said EPF had gradually decreased its exposure in traditional and conventional fixed income assets and had shifted maturing assets into higher yielding assets in the form of equities and real estate but within the tolerable risk limits.

On the back of a steady growth seen in both domestic and global equity markets in 2012, equities contributed RM13.91 billion in income representing 44.84 per cent of gross investment income, he said.

Investments in Malaysian Government Securities and Equivalents, Real Estate and Infrastructure and Money Market Instruments earned RM6.26 billion, RM595.63 million and RM574.91 million respectively.

EPF total investment assets as at Dec 31, 2012, stood at RM526.75 billion surpassing the half a trillion mark, up 12.31 per cent from RM469.04 billion recorded in the previous year.

This increase was largely contributed by the positive net annual contributions from members and employers as well as consistent and encouraging investment performance across all asset classes.

As a result of the increase in membership base, the EPF requires RM4.46 billion to pay every one per cent dividend rate for 2012.

This represents a 9.34 per cent increase over RM4.08 billion paid for every one per cent dividend rate for 2011. The amount needed to pay a one per cent dividend rate will continue to rise eight to nine per cent annually.

One of the notable transactions in 2012 was the fund's expansion of its property investments, both overseas and locally, which included the Battersea Power Station project in London, UK, and the finalising of the purchase of 932ha of Rubber Research Institute land in Sungai Buloh for RM2.28 billion to be developed into a new township.

Follow @YahooMalaysia on LINE for daily news updates.

Comments on Yahoo pages are subject to our link to Comments Guidelines. You are responsible for any content that you post. Yahoo is not responsible or liable in any way for comments posted by its users. Yahoo does not in any way endorse or support comments made by its users.

  • MH370 passenger’s partner tells of strange email from sacked Fox officer The Malaysian Insider
    MH370 passenger’s partner tells of strange email from sacked Fox officer

    The partner of an American passenger aboard the missing Malaysia Airlines flight MH370 has spoken about how a Fox executive who was recently sacked by the news station had contacted her offering to raise funds on her behalf. Sarah Bajc, whose partner Philip Wood is among the 239 people on board the missing plane, told the Sydney Morning Herald... …

  • My last moments with Pa: Ramkarpal Singh The Malaysian Insider
    My last moments with Pa: Ramkarpal Singh

    A week after the tragic crash that took the lives of veteran lawyer and politician Karpal Singh and his personal aide, Michael Cornelius, his son Ramkarpal recounts the final hours with his father that fateful day. This is his story, as told to V. Anbalagan, assistant news editor. “My parents (Karpal and Gurmit) had gone to Pantai Hospital... …

  • Absolute power corrupts absolutely, Dr Mahathir reminds current leaders The Malaysian Insider
    Absolute power corrupts absolutely, Dr Mahathir reminds current leaders

    Malaysian leaders have been reminded not to look down on the public’s capability to topple a corrupt government as what had happened in the Middle East during the Arab spring, warned Tun Dr Mahathir Mohamad (pic). In his latest blog posting today, the country’s longest serving prime minister said that monarchs and dictators in the Middle East... …