Malaysian REITs: Key financials based on various segments
LAST Saturday Malaysians were surprised when the Employees Provident Fund (EPF) announced a a dividend rate of 6.15% for conventional savings and 5.9% for syariah-based savings. The announcement was indeed a pleasant surprise when in general most expected the EPF to announce a payout of between 5% and not more than 6%. I must admit that I too thought at best, EPF would announce a rate of 5.6%.
According to the EPF, the total payout for last year’s performance was RM47.31bil, a drop of just 1.7% from the 2017 total payout of RM48.13bil. Considering the tough local equity markets, the EPF’s ability to generate RM29.28bil in equity investment income alone, which accounted for a total of 57.6% of its income for the year, is commendable.
The dividend became a talk of the town among fund managers and investors as some wondered how it was possible that the EPF managed to churn out such high dividend rates when most fund managers probably failed to do so as the FBM KLCI fell by 5.9% last year while some market indices, like the Bursa Malaysia Construction Index, dropped by a whopping 50%.
Some wondered if there are other ways to make at least 6% a year as the current market environment doesn’t seem to be favourable as the FBM KLCI, on a year-to-date basis, remains lacklustre, rising by just 2%.
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