Saturday, October 16, 2021

Billion dividends for the largest pension fund in Malaysia

The EPF, the largest pension fund in Malaysia, said on Saturday that it has managed to record a strong performance in 2020, weathering the economic fallout and health crises caused by the pandemic.

In a statement, the fund announced a dividend distribution of 5.2% for the year 2020, compared to dividends amounting to 5.45% in 2019, with dividends amounting to 42.88 billion ringgit ($ 10.6 billion) for traditional savings. Dividend distribution of RM4.76 billion, representing 4.9% to Sharia-compliant savings, compared to dividends of 5% in 2019.

“The rapid spread of the Corona pandemic has created sudden and exceptional circumstances and made it difficult to manage the crisis,” said the fund’s board chairman, Ahmed Badri Mohamed Zahir.

He said that the Pension Fund has “rebalanced” its investment portfolios according to the repercussions of the pandemic, which coincided with a state of uncertainty around the world in light of the circumstances imposed by the US presidential elections, the trade dispute between the United States and China, and the impact of Brexit negotiations on the financial markets. around the world.

4.62%, the average of a five-year dividend
The Pension fund stated in the statement that the average real annual dividend distributions after accounting for the impact of inflation over five years amounted to 4.62% for traditional savings, and 4.32% for savings that comply with Islamic law, which exceed the target of 2% for five consecutive years.

The Malaysian Pension Fund launched the first and largest Sharia-compliant fund in the world.

The fund’s total assets under management grew 7.9% year-on-year to 998 billion ringgit in 2020, and the market value of its assets was about 1.02 trillion ringgit by the end of December. Fixed income instruments accounted for 46% of the fund’s investments, followed by stocks with 42%, while 33% of the fund’s investment assets are outside Malaysia.

Ahmed Badri said that the future plan of the fund focuses on investments that follow environmental, social, and corporate governance standards, which “will contribute to supporting growth and mitigating risks.”`

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