EPF declares dividends of 6.15% for conventional savings, 5.9% for Shariah savings despite difficult year

Pic by the Star

KUALA LUMPUR (Feb 16): The Employees Provident Fund (EPF) has declared a dividend rate of 6.15 percent for Conventional Savings 2018, with payout amounting to RM43 billion and 5.9 percent for Shariah Savings 2018, with a payout amounting to RM4.32 billion.

In total, the payout for 2018 amounts to RM47.31 billion, a marginal decrease of 1.7 percent from 2017.

“With a real dividend of 3.93 percent for Simpanan Konvensional and 3.68 percent for Simpanan Shariah on a rolling three-year basis respectively, the EPF has exceeded its mandate of delivering a dividend of at least 2.5 percent on a yearly basis and at least 2.0 percent real dividend on a rolling three-year basis,” the EPF said in a statement today.

“We are very grateful and pleased that we have been able to consistently meet our two strategic investment targets. Beyond the anticipated nominal dividends, more importantly is that we consistently deliver above-inflation returns so that we are able to preserve and enhance the value of our members’ savings over the long term and help them achieve a better retirement future,” said EPF Chairman, Tan Sri Samsudin Osman.

“This is despite 2018 being a difficult year, marked by volatility and a downward trend in global markets, due to the long-standing US-China trade war and four rounds of US interest rate hikes in the year alone.

“Nonetheless, we remained focused on our long-term strategy and our portfolio diversification has provided resiliency and delivered commendable returns to our members,” he said.

Gross investment income for 2018 was RM50.88 billion, out of which a total of RM4.62 billion was attributed to Shariah Savings, proportionate to its share of total Shariah assets, while RM46.26 billion was attributed to Conventional Savings.

The lower income for EPF’s Shariah portfolio in 2018 was due to the underperformance of the telecommunications, construction and oil and gas sectors in the domestic portfolio.

The dividend payout for each account was derived from total gross realised income for the year after deducting the net impairment on financial assets, unrealised gains or losses from intercompany transactions, investment expenses, operating expenditures, statutory charges, as well as dividend on withdrawals.

The payout amount required for each one per cent of the dividend in 2018 was RM7.72 billion, which is higher compared with RM7.02 billion in 2017.

On the investment outlook, Tan Sri Samsuddin said: “The volatility in the global markets is likely to persist over the long standing trace dispute between the US and China. We are also bracing ourselves for other external factors such as the impending Brexit deadline, slowdown in global growth and further US interest rate hikes.

“Nonetheless, we remain committed to our long term global diversification as guided by our Strategic Asset Allocation. This has time and again served us well; especially during times of market uncertainties and equipped us with the ability to withstand short-term volatilities.”

Meanwhile members can check their EPF accounts statement for the crediting of 2018 dividend starting Sunday 17 February 2019 through i-Akaun or via the myEPF website at www.kwsp.gov.my. The i-Akaun mobile application is available for download via Google Play Store or Apple AppStore. –Malaysia World News

 

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