The Employees Provident Fund (EPF) Board has announced a dividend rate of 5.50% for Simpanan Konvensional, resulting in a total payout of RM50.33bil. Simpanan Shariah, on the other hand, received a dividend rate of 5.40%, with a total payout of RM7.48bil. This brings the retirement fund’s total payout for 2023 to RM57.81bil.
EPF’s total investment income saw a significant increase of 29% to RM66.99bil in 2023, up from RM51.91bil in 2022. This growth, which includes listed equity write-downs, showcases the fund’s conservative approach of distributing dividends only from realised income.
A portion of the total income, RM5.72bil, came from mark-to-market gains and was excluded from the dividend distribution. The fund’s investment assets also saw a robust 13% increase, reaching RM1,135.82bil, driven by a 15% rise in contributions to RM97.56bil in 2023 from RM84.78bil in 2022.
EPF chairman Tan Sri Ahmad Badri Mohd Zahir stated, “EPF has been able to provide improved dividends due to its resilient performance in 2023, with equities playing a significant role in driving overall performance.” He highlighted that despite various economic challenges, the global economy remained resilient, allowing EPF to enhance returns through strategic portfolio management.
Badri added, “After adjusting for inflation, the real dividend for Simpanan Konvensional was 2.89% and 2.51% for Simpanan Shariah over a rolling three-year period (2021-2023). This exceeds EPF’s strategic target of at least a 2% real dividend over the same period.”
EPF’s portfolio diversification and active fund management have enabled it to deliver improved dividends in 2023. The RM57.81bil dividend distribution will benefit more than 16 million EPF members, including individuals from both formal and informal sectors.
Despite mixed performance in the global equities market in 2023, EPF actively managed its portfolio to generate earnings from equities. The fund’s Strategic Asset Allocation (SAA) and active management strategies played a critical role in achieving positive results for the year.
The equities asset class contributed RM39.05bil after accounting for write-downs, representing 58% of EPF’s total investment income with a return on investment (ROI) of 8.68%. This was higher compared to the RM27.12bil in 2022.
Fixed income instruments, particularly Malaysian Government Securities (MGS), remained a stable component of the portfolio, contributing RM19.74bil or 30% of EPF’s total investment income, with an ROI of 4.41%.
EPF’s active engagement in the domestic market continued in 2023, with the fund being the largest investor in the domestic market with assets under management (AUM) of RM702.48bil. This accounted for more than 80% of the fund’s investment allocation, contributing to the economy.
The International Monetary Fund has projected global growth to be 3.1% in 2024, with Bank Negara Malaysia forecasting a GDP growth of 4% to 5%. EPF’s focus on long-term value creation and strategic diversification is expected to sustain its strong performance and commitment to members.
