EPF Historical Returns & Performance

EPF historical returns data since inception in 1952, current investments overview, dividend calculation, and future performance estimates. Now including EPF Simpanan Shariah returns.

Updated: Apr 2, 2018

EPF Historical Performance

 

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

  • 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

No.Share% Holding
1Malaysia Building Society Bhd65.56%
2RHB Bank Bhd40.70%
3Malaysian Resources Corporation Bhd34.90%
4Telekom Malaysia Bhd18.04%
5Axiata Group Bhd16.28%
6Digi.com Bhd15.37%
7Genting Plantations Bhd15.33%
8MBM Resources Bhd15.08%
9Public Bank Bhd14.76%
10CIMB Group Holdings Bhd14.40%
11IJM Corporation Bhd14.38%
12United Plantations Bhd14.34%
13IJM Plantations Bhd14.24%
14Sunway Reit Bhd14.12%
15Axis Real Estate Investment Bhd14.03%
16Bermaz Auto Bhd13.58%
17Media Prima Bhd13.35%
18BIMB Holdings Bhd12.72%
19KPJ Healthcare Bhd12.65%
20Hong Leong Bank Bhd12.51%
21Malayan Banking Bhd12.46%
22Fraser & Neave Holdings Bhd12.30%
23Syarikat Takaful Malaysia Bhd12.29%
24Cahya Mata Sarawak Bhd12.26%
25Sime Darby Plantation Bhd12.02%
26Kuala Lumpur Kepong Bhd12.01%
27Alliance Bank Malaysia Bhd11.97%
28Tenaga Nasional Bhd11.91%
29Gamuda Bhd11.83%
30Yinson Holdings Bhd11.73%

 

How will EPF perform in 2018?

EPF faces a challenging task ahead to achieve returns. For 2017, RM7.02b (up from RM6.50b) was needed for every 1% dividend rate (3x increase from a decade ago). Also to be seen EPFs overseas emerging markets investment performance. Overall market performance in 2018 is expected to be poorer than 2017’s performance.

 

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.

For example:
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.

Simplified explanation

  • 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.

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