SOURCE:
https://www.freemalaysiatoday.com/category/nation/2019/02/18/40-of-epfs-2018-income-came-from-overseas/
40% of EPF’s 2018 income came from overseas
KUALA LUMPUR: The Employees Provident Fund (EPF) said today that 40% of its income last year was derived from overseas investments.
EPF CEO Tunku Alizakri Alias said in a media briefing that the company had to “look overseas” for superior returns to pay higher dividends to its members.
“The overseas markets are growing faster than the local capital market,” said Alizakri.
Alizakri added that equities remained a major contributor of income for EPF last year, with 57.55% amounting to RM29.28 billion. It was a minor decline of 6.96% compared to RM31.47 billion in 2017.
As for the 2019 outlook, Alizakri said it was uncertain with trade tensions between the US and China, as well as the Brexit issue in Europe.
EPF has 14 million members and manages around RM800 billion in funds.
For 2018, it paid out 6.15% dividend for its conventional savings scheme and 5.9% for its shariah savings scheme. Gross investment income for 2018 was RM50.88 billion.
EPF needs to generate RM7.72 billion to pay every 1% of dividends.
The company currently invests in 40 countries with its overseas portfolio amounting to RM222.61 billion.
EPF’s portfolio is divided into 50% fixed income, 39% equity, 6% money market and 5% real estate and infrastructure. Its strategic asset allocation is up for review this year.
----------------------------------------------------------------------------------------------------------RM222.61 Billion = 40 % Overseas Investments
RM333.915 Billion = 60% Local Msia Investments
RM556.525 Billion = 100% TOTAL Investments
