The Employees Provident Fund (EPF) announced dividend rate of 5.80 percent for the financial year ended 31 December 2010. It was 15 basis points higher than 5.65 percent announced in 2009. However, it is slightly lower than the rumors of 5.85%, early this month.
The total dividend payout stand at RM21.61 billion and it was the highest ever. Gross income for the same period was at historical high of RM24.06 billion which is 39.76 percent higher than 2009.
The balance of 2010 income used for impairment allowance on financial assets, investment expenses, operating expenditures and statutory charges as well as dividend on withdrawals.
2010 income mainly driven by the performance of equity investments. Improvement in financial and economic conditions provided the market with sufficient liquidity to allow EPF to take profit taking throughout the year.
Income from equities stand at RM10.94 billion (45.45% of gross income) which was 125 percent higher than 2009 at RM4.85 billion.
Loans and Bonds was the second largest investment income stand at RM7.02 billion. The third largest income was coming from Malaysian Government Securities contributing RM5.30 billion compared to RM5.22 billion in 2009.
This was followed by Money Market Instruments which returned a gross investment income of RM703.52 million, up significantly from RM435.57 million. Meanwhile, a total of RM103.18 million was derived from Property and Miscellaneous Income.
Members may check their EPF Account Statement for the crediting of the 2010 dividend, either via EPF Kiosks, counters or i-Akaun, from Monday, 21 February 2011.
EPF investment primary objective is to preserve the capital while at the same time adding value to retirement savings. EPF total investment assets also continued to register healthy growth by crossing the RM400 billion mark to stand at RM440.52 billion as at 31 December 2010.