EPF Historical Returns & Performance

///EPF Historical Returns & Performance
EPF Historical Returns & Performance2019-02-19T23:25:29+00:00

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 19, 2018

EPF Historical Performance

 

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%

 

EPF Investment Diversification Goals

  • 50% fixed income
  • 40% equities
  • 10% others

 

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

No. Share % Holding
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%
6 Digi.com Bhd 15.37%
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%
29 Gamuda Bhd 11.83%
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.

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.