What the EPF’s 1Q says about 2020 dividend

A. RM50 billion write-down?

Excluding the unspecified amount of write-downs from “mainly equities” that resulted in a net investment income of RM7.5 billion for 1Q2020, the headline gross investment income of RM12.16 billion for 1Q2020 was not too shabby compared with the RM9.6 billion booked in 1Q2019 — which incidentally was the EPF’s worst quarter last year as income from equities fell by about RM2 billion compared with the subsequent quarters.

The EPF’s total investment assets of RM874 billion as at end-March 2020, however, were down just over RM50 billion or 5.5% compared with RM924.75 billion as at end-2019.

B. Even 4% dividend tough

Alizakri reminded yet again that the threshold to deliver every 1% of dividend has risen substantially in the past decade and is still increasing. In 2009, the EPF needed RM3.43 billion to pay 1% of dividend. That means that the RM45.82 billion dividend declared for 2019 would have been enough to pay more than the 13% dividend declared in 2009.

The EPF has yet to release its 2019 annual report and financial statements, which need to be approved in Parliament beforehand.

The EPF only needs to deliver at least a 2.5% nominal dividend and beat inflation by at least 2% on a rolling three-year basis.

https://www.theedgemarkets.com/article/what...t-2020-dividend

more contribution + compounded interest, of course la need bigger amount to maintain the same % dividend +

WHY is he using data which is 11 years old?

I am worried with next year dividend.

If u are worried, u can take out and invest in unit trust

you will be more worried.

To be fair, if you have high tax brackets, max out PRS unit trust contribution first to cut tax.

if have kids...sspn better

Lol !

I'm trying to derive profile of fellow forumers.
Will plot some Charts.

Age :
20-30, a
31-40, b
41-50, c
51-60, d
> 60, e

Kwsp acc1+acc2+gold (RM K), ie, 1,000s savings :
(If earn Sgp $ in SRS or CPF, just x 3.)
Rm100-300, a
Rm301-600, b
Rm601-900, c
Rm901-1200, d
Rm1201-1500, e
>Rm1501, f

How you feel of kwsp performance :
Satisfied, let kwsp fund mgrs do their work, a
Neutral, buy 10% PRS n IT, b
Dissatisfied, want to manage own Acc1, c
Most dissatisfied, want to withdraw all kwsp, d

Example of a Wealthy Uncle reply cud be = d, f, a.

D, F, C

Tq, #1.

A, A, A (for the third option, EPF is okay but due to liquidity issues, I diversify into stocks, ASNB FPs and UTs offered by FSM. Otherwise I am satisfied with the EPF managers' performance.)

I heard EPF will bring up age to 65 for withrawal. Is it true?

you must have missed this then....published on 26 june 2020
https://www.thestar.com.my/news/nation/2020...stion-says-fund

unit trust is more risky.

*must come with drillz attached.

Put under pillow?

Well, that is interesting to know that someone that is dissatisfied and want to manage account 1 themselves would want to self contribute more money into epf. That just doesnt make any sense.