EPF to declare 6.75% dividend for 2014, highest since 1999, says source

The Employees Provident Fund will dole out a dividend of 6.75%, the highest since 199, to its members, says a source. – The Malaysian Insider pic, February 6, 2015. 

The Employees Provident Fund (EPF) will declare a dividend of 6.75% for last year to its 14 million members, sources said.

The payment was the highest since 1999, when the dividend was 6.84%, the source said.

"EPF chief executive officer Datuk Shahril Ridza Ridzuan will make the official announcement tomorrow,"  the source told The Malaysian Insider.

The source said the EPF board met with stakeholders, including representatives of the government and employers, to convey its decision about the payout.

The Edge Financial Daily reported yesterday that the pension fund expected to sustain its high payout ratio by declaring a higher dividend payout for 2014 compared with 6.35% for 2013 and 6.15% for 2012.

The dividend rate of 6.35% for 2013 was declared on the back of a record gross investment income of RM35 billion, a 12.8% rise from RM31.02 billion in 2012.

The EPF delivered investment income of RM10.32 billion for the third quarter ended September 30, 2014 (3Q 2014), up RM205.58 million from RM10.11 billion in 3Q 2013.

The daily further said the 3Q14 performance was driven mainly by equity investments, with the asset class contributing 61% to the total quarterly investment income.

The EPF in November last year said it aimed to provide at least 2% of real returns to members over a three-year rolling period.

A higher dividend rate announcement for 2014 would be a welcome surprise to many despite the lacklustre performance of the FBM KLCI last year.

Shahril in November warned that the domestic and global equity markets had started to show signs of greater volatility, when announcing the fund’s 3Q 2014 investment results.

- TMI