MALAYSIA - The Employees Provident Fund (EPF) has reported its highest ever dividend payout of RM21.61bn ($7.1bn) for 2010.
Malaysia's biggest pension fund earned a record gross investment income of RM24.06bn, up 39.76% from the RM17.22bn gross income recorded in 2009, with the fund's payout increasing by 11.55% from RM19.37bn in 2009. The dividend is 15 basis points higher than last year's which was 6.65%. EPF's total investment assets were RM400bn as of 31 December 2010.
The fund said its high results were due to strong performing equities, which represents 45.45% of the fund's total gross investment income. A total of RM10.94bn was earned from equities compared to RM4.85bn earned in 2009.
The fund invested 29.17% in loans and bonds which returned RM7.02bn, 22.03% in Malaysian government securities which returned RM5.3bn, 2.92% in money market instruments which gave RM703.5m and 0.43% in property and miscellaneous income which returned RM103m.
EPF chairman Tan Sri Samsudin Osman said: "The remarkable investment income achieved in 2010 was especially driven by the performance of equity investments. The improved financial and economic conditions provided the market with sufficient liquidity, allowing profit taking activities throughout the year.
"While we are optimistic that the positive momentum will carry on into 2011, prospects for this year will continue to be dependent on both domestic and global economies gaining strength. As a retirement fund, the EPF will remain true to our goal by continuing to invest in accordance to our strategic objectives while taking stringent risk management initiatives to effectively manage uncertainties and threats."
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