How the EPF invests its money
Last Monday, the EPF released its most recent dividend payout ratio, which is 6.10 percent for standard accounts and 5.65 percent for Islamic accounts. Do you know where the EPF’s money is invested? The Employees Provident Fund has released its full-year 2021 investment performance report.
The Employees Provident Fund (KWSP) said that 44% of funds are invested in the stock market, 45% in fixed income instruments, 5% in money market instruments, and 6% in real estate and infrastructure projects.
Stock market investments accounted for 58% of the total investment, fixed income instruments for 29%, money market instruments for 1%, and real estate and infrastructure projects for 12%.
Furthermore, the KWSP was able to recover RM22 billion from foreign investments in order to deal with the three withdrawal schemes: i-Lestari, i-Sinar, and i-Lestari. This is the bureau’s offshore investment from many years ago, and it has yet to meet the mandatory returns due.
The three withdrawal programmes, totaling RM110 billion, have also prompted fund managers to cut their participation in the local capital market while also reducing the amount of money invested globally last year.
The emergency withdrawal of the provident fund requires a “replacement,” and the impact on the local stock market is that the injection of RM655 billion in 2020 would be lowered to RM639 billion in 2021, a reduction of RM16 billion.
