EPF historical returns data since inception in 1952, current investments overview, dividend calculation, and future performance estimates. Now including EPF Simpanan Shariah returns.
Updated: Feb 22, 2020
EPF Historical Performance
EPF Investment Diversification Goals
- 50% fixed income
- 40% equities
- 10% others
How did EPF perform in 2019
- 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.
- 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 membership: 14.6m (+2.8%).
- Registered employer base: 522,300 employers (+3%).
- i-Akaun subscribers: 7.6m (+24.6%).
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How did EPF perform in 2018
- EPF Conventional Savings: 2018 dividends of 6.15% with payout of RM43.00b.
- EPF Simpanan Shariah: 2018 dividends of 5.90% with payout of RM4.32b.
- Gross investment income of RM50.88b (46.26 Conventional + 4.62b Simpanan Shariah).
- Payout per 1.00% of dividends = RM7.72b (2017: RM7.02b)
- Cost to assets under management (AUM): 0.27%
- Cost to gross income: 4.24%
- Cost to average total asset: 0.17%
EPFs Investments Income Contribution 2018
- Equities (Shares) Investment: 57.55% (29.28b)
- Malaysian Government Securities & Equivalent and Loans & Bonds: 36.13% (18.38b)
- Real Estate & Infrastructure: 4.12% (2.10b)
- Money Market Instruments: 2.20% (1.12b)
- Total Investment Income: 50.88b
- Local investments: 62.48%
- Foreign investments: 37.52%
How did EPF perform in 2018?
EPF faces a challenging task ahead to achieve returns. For 2018, RM7.72b was needed for every 1% dividend rate (2017: RM7.02b; 2016: RM6.50b). This is a 3x increase from a decade ago.Overall market performance in 2018 was as expected poorer than 2017’s performance. It was noted that 2018 was a volatile year and all stock market indices ended down with FBMKLCI -6% and global equity indices -9% to -16%.
How did EPF perform in 2017
- EPF now manages two saving schemes with two dividend rates.
- EPF Conventional Savings: 2017 dividends of 6.90% with payout of RM44.15b.
- EPF Simpanan Shariah: 2017 dividends of 6.40% with payout of RM3.98b.
- Returns of EPF Conventional higher with outperformance of global banking stocks, and EPF Shariah impairments from oil and gas, and telecommunication counters.
- Returns between EPF Conventional and Shariah will deviate in short term but long-term returns expected to be similar.
- Payout increase up 29.8%.
- Highest ever gross investment income of RM53.14b.
- Cost to AUM (asset under management) increased to 0.26% (2016: 0.25%).
- Cost to gross income down to 2.53% (2016: 2.56%).
- Cot to total asset up to 0.17% (2016: 0.16%).
- EPF overseas exposure: 28%.
EPFs Investments Income Contribution 2017
- Equities (Shares) Investment: 42.23% (31.47b)
- Malaysian Government Securities & Equivalent and Loans & Bonds: 32.84% (17.45b)
- Real Estate & Infrastructure: 5.59% (2.97b)
- Money Market Instruments: 2.33% (1.24b)
- Total Investment Income: 53.14b
EPF Top 30 Equity Holdings 2017
|1||Malaysia Building Society Bhd||65.56%|
|2||RHB Bank Bhd||40.70%|
|3||Malaysian Resources Corporation Bhd||34.90%|
|4||Telekom Malaysia Bhd||18.04%|
|5||Axiata Group Bhd||16.28%|
|7||Genting Plantations Bhd||15.33%|
|8||MBM Resources Bhd||15.08%|
|9||Public Bank Bhd||14.76%|
|10||CIMB Group Holdings Bhd||14.40%|
|11||IJM Corporation Bhd||14.38%|
|12||United Plantations Bhd||14.34%|
|13||IJM Plantations Bhd||14.24%|
|14||Sunway Reit Bhd||14.12%|
|15||Axis Real Estate Investment Bhd||14.03%|
|16||Bermaz Auto Bhd||13.58%|
|17||Media Prima Bhd||13.35%|
|18||BIMB Holdings Bhd||12.72%|
|19||KPJ Healthcare Bhd||12.65%|
|20||Hong Leong Bank Bhd||12.51%|
|21||Malayan Banking Bhd||12.46%|
|22||Fraser & Neave Holdings Bhd||12.30%|
|23||Syarikat Takaful Malaysia Bhd||12.29%|
|24||Cahya Mata Sarawak Bhd||12.26%|
|25||Sime Darby Plantation Bhd||12.02%|
|26||Kuala Lumpur Kepong Bhd||12.01%|
|27||Alliance Bank Malaysia Bhd||11.97%|
|28||Tenaga Nasional Bhd||11.91%|
|30||Yinson Holdings Bhd||11.73%|
How are EPF Dividends Calculated?
In order to determine the dividend rate, factors that need to be taken into consideration include net income and total for 1% dividend at year-end.
Dividend Rate = Net income (a) x 1% Total for a 1% dividend (b)
Investment income + Non-investment income – Expenses
Total for a 1% dividend is based on:
Opening balance of contribution (after withdrawal) that obtain dividend for a 12-month period, and
Monthly contribution that obtain pro rated dividend i.e. dividend for the n-month will get (12-n) month dividend. For example, the September contribution (n=9) will obtain a 3 months dividend.
- Your balance from previous year will be given full % dividend
- Your contributions in the current year will be given prorated based on N months. For example:-
- January: 11/12 mths
- February: 10/12 mths
- If you make an EPF withdrawal, the dividends would be pro-rated on daily rest
- If you make a full withdrawal from EPF, you will receive 2.5% for the withdrawal. The remainder returns (if any) will be given after next EPF returns declaration.