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The Employees Provident Fund (EPF) has declared a dividend of 6% for the year of 2011 – the highest in 10 years. The dividend, which amounts to RM24.47 billion, is a 0.2% increase over the 5.8% paid out for 2010. Despite a challenging investment landscape, 2011 saw commendable performance by the fund by reporting the strongest performance since 2001. The highest dividend paid by EPF was 8.5% for five years consecutively between 1983 and 1987. The fund paid out RM21.61 billion in 2010, RM19.37 billion in 2009; RM14.26 billion in 2008; RM16.87 billion in 2007 and RM13.48 billion in 2006.

The fund saw higher gross investment income of RM27.24 billion last year, up 13.18% from 2010, while total investment assets grew 6.52% to RM469.22 billion, up from RM440.52 billion recorded in 2010. This rise was primarily contributed by the positive net annual contributions from members and employers, as well as consistent and encouraging investment performance. The fund had invested 60% of its assets in stable and conventional low-risk fixed income instruments, and 36% in equities while the remainder went to money market instruments and properties. Equities yielded the highest returns at RM13.29 billion while the other income contributors were: loans and bonds RM7.54 billion; Malaysian government securities RM5.63 billion; and money market instruments RM656.36 million.

Due to the increased membership base, RM4.08 billion is required to pay each 1% dividend rate for 2011. This represents a 9.44% increase over the RM3.73 billion paid for every 1% dividend rate for 2010. The amount required to pay a 1% dividend will continue to rise by 8% to 9% annually. EPF’s fund is expected to hit half a trillion by the end of the year or early next year.

Members may check their EPF account statements for the crediting of the dividend, either through EPF kiosks, counters or online via i-Akaun starting from today 20th FEB 2012.