Saturday, January 27, 2007

LTAT Dividend Announcement

Lembaga Tabung Angkatan Tentera ("LTAT"), the company that manages the Armed Force Fund. LTAT has announced a high dividend and bonus payment rates of 7% and 3% respectively for the financial year ending 31 Dec 2006. Total amount to be paid out could be approx. RM471.6 million. From these figures, their total investment could be in the region of RM4.72 billion. Besides that, a further 5% special dividend could be given too. (source: The Star)

Now we look at the pathetic Employees Provident Fund ("EPF"). It's compulsory for every employed person in Malaysia to contribute 11% of their salary towards this fund. In EPF's 2005 report, with a total fund of RM263 billion it has only generated a payout of 5% to each of the 11.09 million members. If this is a government arm, why can't the government get the best fund manager to manage a national fund which has the general public's interest. How come LTAT's limited fund from its armed force personnel only can generate a much higher return?? Imagine the returns that LTAT could generate if they have what EPF has in terms of total fund. What strategy that LTAT adopts which EPF do not know of?

I'm waiting for EPF's announcement on the 2006 payout.
Tags: Lembaga Tabung Angkatan Tentera, LTAT, Employees Provident Fund, EPF, Investment, Dividend, Bonus, Fund Manager, Government



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