EPF declares higher dividends for 2021

The Employees Provident Fund (EPF) has declared a 6.10% dividend for conventional savings for 2021 with a total payout of RM50.45 billion, surpassing the 5.45% dividend declared during the pre-pandemic year of 2019.

CEO Amir Hamzah Azizan also announced a 5.65% dividend for shariah savings, with total payout of RM6.27 billion for 2021, beating the 5.0% dividend in 2019.

This brings the total payout amount for 2021 to RM56.72 billion.

Amir said the dividend delivered in 2021 was partly due to the board’s healthy and globally diversified portfolio.

“The RM101 billion pandemic-related withdrawals since the year 2020 resulted in 48% of EPF members having less than RM10,000 in their accounts.

“We hope that this dividend and our continued performance will help us begin the process of rebuilding our members’ retirement savings, as economic recovery takes shape over the course of the year,” he told a media briefing on EPF’s 2021 financial performance today.

According to him, the primary concern with the withdrawals was the impact on members’ retirement adequacy.

However, he said despite the challenge of managing liquidity in the face of these outflows, the EPF had the capability and agility to respond with minimal impact to the financial market.

For 2021, Amir said the EPF had rebalanced and managed its investment portfolios by acquiring shares that were fundamentally strong at attractive prices, as well as capitalising on its overseas investments, which contributed 56% to its overall returns.

As of Dec 31, 2021, he said the EPF recorded an increase of 6.0% in total gross investment income to RM67.06 billion from RM63.45 billion in 2020, driven by the progressive recovery of the equity markets and most asset classes amid the global rebound.

“For 2021, the EPF recorded its first ever negative net contribution (contributions after withdrawals) in 20 years of RM58.2 billion, but remained steadfast and prudent in its long-term investment strategies while adapting to the challenges to ensure long-term sustainable returns.

“The EPF recorded a gross investment income of RM67.06 billion, with RM6.91 billion allocated to shariah savings,” he said.

Amir said the performance was attributed to the EPF’s diversified approach, guided by its strategic asset allocation which has kept the fund resilient against financial shocks and stable in unprecedented situations.

“By asset class, fixed income instruments made up 45% of investments while equities comprised 44%. Real estate and infrastructure as well as money market instruments made up 6.0 and 5.0% of EPF assets respectively,” he added.

The crediting of dividends for both conventional and shariah savings will be completed on March 6, 2022, when members may check their accounts via i-Akaun or get their statements from EPF kiosks nationwide.