by PRIYA VASU/ pic by TMR FILE
LEMBAGA Tabung Angkatan Tentera (LTAT) or the Armed Forces Fund Board declared a dividend of 2.5% for the financial year ended Dec 31, 2019 (FY19), higher than the 2% dividend recorded in FY18.
The improved dividend was declared on the back of a lower net profit of RM91.7 million in FY19 compared to RM221 million for FY18.
LTAT’s performance was impacted primarily as a result of zero dividends received from two key subsidiary companies, Boustead Holdings Bhd and Affin Bank Bhd, compared to RM124.2 million in dividend received in FY18. Investments in these two subsidiaries constitute 47% of its total fund size.
The fund’s results were also affected by the absence of land sale compared to RM87.2 million recorded in FY18.
In a statement, LTAT chairman Gen (Rtd) Tan Sri Dr Mohd Zahidi Zainuddin said: “FY19 was a difficult year for LTAT. The fund faced a challenging investment environment.
“However, LTAT was able to announce better dividends in FY19 as a result of a waiver of liabilities that were due to the government. LTAT was exempted from paying dividends on the government’s contribution to the fund for FY19. This has allowed the fund to also record higher retained earnings of RM62 million in FY19 after payment of dividend amounting to RM220.9 million, compared to retained earnings of RM38.7 million in FY18.”
He said LTAT currently faces a tough investing environment due to the wide-ranging socioeconomic impact of the Covid-19 pandemic which brings with it unprecedented challenges.
As at Dec 31, 2019, LTAT’s assets under management stood at RM9.48 billion.
The Employees Provident Fund (EPF) declared 5.45% dividend for conventional savings and 5% for Shariah savings in 2019.
The 5.45% dividend declared for conventional savings is the lowest since 2008, when the provident fund declared 4.5%. For Shariah savings, it is the lowest dividend declared since it started in 2016.
Previously, the EPF declared a 6.15% dividend for conventional savings and 5.9% for Shariah savings in 2018.
Pilgrimage fund Lembaga Tabung Haji (TH) announced a dividend at 3.05% totalling RM2.1 billion for all depositors for FY19. TH announced its lowest dividend in history at 1.25%, amounting to RM913 million for all depositors for FY18.
Amanah Saham Nasional Bhd has declared income distribution per unit of 4.75 sen for Amanah Saham Bumiputera 2 to 439,543 unitholders compared to six sen per unit declared in March last year.
Permodalan Nasional Bhd also announced 4.25 sen for Amanah Saham Malaysia, compared to 5.5 sen announced last year, to 553,188 unitholders, with a total income distribution payout for the two funds amounting to almost RM1.4 billion, for the financial year ending March 31, 2020.