KUCHING, Feb 27: The Employees Provident Fund (EPF) has declared a 5.2 per cent dividend for conventional savings and 4.9 per cent dividend for shariah savings.
The total distribution for 2020 amounted to RM47.64 billion, consisting of RM42.88 billion from conventional savings and RM4.76 billion from shariah savings.
EPF in a statement today said the retirement fund has been successful in posting a strong performance in 2020 despite the Covid-19 pandemic.
EPF chairman Tan Sri Ahmad Badri Mohd Zahir in the statement said the pension fund has managed to safeguard its members’ retirement savings well while meeting their immediate needs to deal with the current challenges.
Ahmad Badri added it was not easy at times as the EPF had to walk a tightrope in ensuring that its members survive the difficult times while balancing their future needs.
“The quick spread of Covid-19 and its transmissibility made it a Black Swan event that many found challenging to manage. However, we were proactive in managing the pandemic and that helped us to ride through the challenges. Our focus on digitalisation enabled us to assist our members more efficiently and seamlessly while ensuring that we remain relevant to members who are more technology-savvy.
“The EPF’s speed of adaptability in its investment strategy and processes ensured that we were able to deliver optimum performance, and we further leveraged on the strength of our approximately 250-strong investment professionals who diligently managed the portfolios and took proactive measures.
Solid teamwork and digital infrastructure ensured that we could adapt seamlessly to the new work norms,” he said.
According to the EPF in a press statement, following lower net contributions during 2020, the EPF’s ability to adapt to the current times ensured its investments were able to deliver long-term sustainable returns under the new normal.
The EPF added the fund recorded its highest-ever gross investment income of RM60.98 billion, with RM6.15 billion allocated to shariah savings.
“The strong performance was due to the prudent approach guided by the fund’s overall strategic asset allocation, which has kept the EPF resilient despite the unanticipated crisis.
“By asset class, fixed income instruments made up 46 per cent of investments, while equities comprised 42 per cent.
“Real estate and infrastructure, as well as money market instruments, made up 5 per cent and 7 per cent respectively,” the EPF added. —DayakDaily
