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