EPF declares highest dividend for 2012

  • After Sarawak ejection, PKR’s Tian Chua now booted from Sabah
    After Sarawak ejection, PKR’s Tian Chua now booted from Sabah

    KUALA LUMPUR, April 18 — PKR’s Chua Tian Chang was deported from the Kota Kinabalu airport in Sabah today, less than a month after the opposition lawmaker was denied entry into Sarawak. Chua,... …

  • Democracy a tall hurdle to Islamic state, says Isma leader
    Democracy a tall hurdle to Islamic state, says Isma leader

    PETALING JAYA, April 18 — A democracy in which all citizens participate equally is a major obstacle towards making Malaysia an Islamic state, Ikatan Muslimin Malaysia (Isma) deputy president... …

  • The tiger will roar beyond the grave

    The tiger sleeps. From kampungs, estates to the cities, be it the young or old, everyone knew Karpal Singh.                 It was former MIC president S Samy Vellu (centre) who first referred to Karpal as a tiger, calling the lawyer-turned-politician a "tiger of the court" while dubbing himself a "lion". In response, Karpal said that Samy Vellu could be the lion and he the tiger, but then was quick to point out that there were no lions in Malaysia. It was following this exchange that …

  • MOU to be signed on black box and remains

    MH370 Malaysia and Australia are expected to sign a memorandum of understanding (MOU) dealing with jurisdictional issues upon the recovery of MH370, such as the handling of black box and any human remains. According to the New Straits Times, the MOU is to avoid any legal pitfalls that may arise, however, its details will not be made public. The report quoted Department of Civil Aviation director-general Azharuddin Abdul Rahman ( left ) saying that Malaysia and Australia will be the only …

  • Selangor assembly sacks caterer for food poisoning
    Selangor assembly sacks caterer for food poisoning

    The Selangor state assembly caterer was given the sack today after the speaker, her deputy and several others suffered food poisoning. Speaker Hannah Yeoh (pic, left) said the decision came following an investigation. She said the caterer was appointed through an open tender system and had been providing meals since the meeting started on... …

  • From Air Itam, memories of ‘Karpal’s coffee shop’
    From Air Itam, memories of ‘Karpal’s coffee shop’

    GEORGE TOWN, April 18 — In the working-class neighbourhood of Air Itam in Penang’s Bukit Gelugor constituency, the Ju Huat Coffee Shop is just another local eatery in a city famous for its food.... …

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.

  • Langkawi BN MP pokes fun at Karpal Singh’s remains The Malaysian Insider
    Langkawi BN MP pokes fun at Karpal Singh’s remains

    As the nation mourns the passing of a great politician, BN MP Datuk Nawawi Ahmad insulted the late Karpal Singh by posting a picture of the veteran politician's blood-smeared face as he lay in his Toyota Alphard following a tragic accident this morning. Along with the Facebook picture was a newspaper cutting on Karpal being opposed to the... …

  • Karpal makes last journey home to Penang The Malaysian Insider
    Karpal makes last journey home to Penang

    Amid tears of sorrow, a coffin bearing Karpal Singh's body was loaded onto a van for his final journey back to Penang today. The 73-year-old, popularly known as the "Tiger of Jelutong", died early this morning after the Toyota Alphard he was in collided with a five-tonne Mitsubishi Canter. Karpal's body had been brought to Raja Permaisuri... …

  • My dad was in KL to see me, says Gobind The Malaysian Insider
    My dad was in KL to see me, says Gobind

    Bukit Gelugor MP Karpal Singh, who died in an accident early this morning, was in Kuala Lumpur to visit his son Gobind Singh Deo who was ill. A distraught Gobind said he was informed of the accident at 2.15am today, and he and his wife rushed to the scene where he saw his father's mangled car and his father's body. "My brother Ramkarpal was... …