LTAT Sees Stable 5 Pct Dividend For Fy2026 Backed By Stronger Reserves

By Siti Noor Afera Abu

KUALA LUMPUR, March 12 (Bernama) -- The Armed Forces Fund Board (LTAT) expects its dividend payout to remain at five per cent for the financial year 2026, supported by a strategy to strengthen reserves to cushion potential market volatility.

Chief executive Mohammad Ashraf Md Radzi said building reserves would help the fund sustain stable dividend distributions despite current market conditions.

“That’s the whole purpose of pushing for reserves to be built up to that level,” he told Bernama after the 2025 Dividend Announcement Ceremony today.

Mohammad Ashraf said reserves accumulated during favourable periods could be used during downturns to support dividend payouts if annual returns fall short of target.

“This approach is vital as LTAT, being a retirement fund, relies on realised investment returns to support dividend payouts to contributors,” he said.

LTAT currently manages assets worth about RM13 billion and requires active portfolio management to ensure each asset generates consistent income.

He said maintaining steady dividend payments would be difficult if too many assets fail to produce returns.

Meanwhile, LTAT’s strategic asset allocation (SAA), introduced in 2020, is undergoing its first revision covering the period through 2030, forming the basis for restructuring its long-term investment portfolio.

“Under the plan, LTAT aims for allocations of around 20 per cent in listed equities and 20 per cent in fixed-income instruments in its long-term portfolio,” he said.

“The importance of gains on disposal is for asset redeployment. These profits and cash generated are meant to be redeployed and reinvested,” he added.

He said the strategy forms part of LTAT’s GEMPUR30 transformation plan, which focuses on strengthening investment structures and ensuring sustainable long-term returns.

Through GEMPUR30, LTAT is placing greater emphasis on strategic portfolio management, including reassessing matured assets to generate cash and reinvesting in assets that deliver more consistent returns.

LTAT announced a 5.35 per cent dividend for the financial year ended Dec 31, 2025 (FY2025), amounting to RM524.74 million, marking the fund’s highest distribution in eight years.

-- BERNAMA