EPF declares 2019 dividends of 5.45% for EPF Conventional and 5.00% for Simpanan Shariah.

EPF 2019 Performance

  • EPF Conventional Savings: 2019 dividends of 5.45% with payout of RM41.68b.
  • EPF Simpanan Shariah: 2019 dividends of 5.00% with payout of RM4.14b.
  • Total dividend payout for 2019: RM45.82 billion.
  • Payout amount required for every 1% dividend rate for 2019: RM7.65b for  Conventional and RM828m for Simpanan Shariah.
  • Assets under management grew to RM924.75b.
  • 70% funds invested in Malaysia.
  • 3 year average dividend for Conventional after adjusting for inflation: 4.33%, (2.33% above 3 year rolling target of 2.00%).
  • For Muslim’s who have not switched to Simpanan Shariah, the dividend purification rate for 2019 is 71% of total dividends.

EPF 2019 Investment Asset Classes Breakdown

  • Fixed Income: 49%
  • Equities: 39%
  • Money Market: 7%
  • REITs: 5%

EPF 2019 Investment Income Breakdown

  • Equities: 47%
  • Fixed income: 43%
  • REITs: 6%
  • Money Market: 4%

EPF 2019 Investment Returns

  • Equities: RM21.5b (-24% vs 2018)
  • Fixed Income: RM19.6b (+17% vs 2018)
  • REITs: RM3.0b (+42% vs 2018)
  • Money Market: RM1.7b (+51% vs 2018)

 

“2019 exemplifies what it means  to live in the VUCA world (Volatility, Uncertainty, Complexity and Ambiguity)” ~ Alizakri Alias, Chief EPF Officer

 

Factors Affecting EPF 2019 Performance

  • US Federal Reserve 3 rate cuts
  • Escalation and unresolved US-China trade spat.
  • Brexit negotations uncertainties.
  • Prolonged Hong Kong protests adding pressure on already fragile far-east market.

 

“We expect that 2020 is going to be just