KUALA LUMPUR: The Employees Provident Fund (EPF) CEO Datuk Shahril Ridza Ridzuan said 1Malaysia Development Bhd (1MDB) has not approached the country's pension fund to take up shares in the former's soon-to-be-listed power assets, Edra Global Energy Bhd.

"Obviously, being the biggest investor on Bursa Malaysia, we intend to look at every single IPO (initial public offering) that comes to the market.

"The company mentioned...we have not been approached. We [also] have to wait for all filings to be done and approved by the relevant authorities before [an investment] decision can be made," he said this during a briefing on EPF’s 2014 investment results today.

Shahril also said EPF is looking to increase its overseas exposure, which currently makes up 23% of its total investment assets to 26% within the next three years time.

As at 31 December 2014, the EPF’s total investment assets stood at RM636.53 billion, up 7.91% from RM589.87 billion in 2013. The overseas exposure, which makes up 23% of the Fund’s total investment assets, is part of the diversification programme to generate consistent returns in the long-term.

Last Saturday, the Employees Provident Fund (EPF), with the approval of the Minister of Finance, announced a dividend rate of 6.75% for the year ended Dec 31, 2014, confirming an article published by The Edge Financial Daily on Feb 5 that it would sustain its high payout ratio by declaring a higher dividend payout for 2014. The EPF declared a 6.35% for 2013 and 6.15% for 2012.

In the statement published on its website, EPF said the dividend rate of 6.75% and RM39.08 billion gross investment income for financial year ended 31 December 2014, was an increase of 11.66% compared with RM35.00 billion in 2013.

The 6.75% dividend amounted to a total payout of RM36.66 billion where RM5.41 billion was required to pay every one per cent of dividend rate for 2014, said EPF. This was 10.53% higher compared with RM4.91 billion paid for every one per cent dividend rate for 2013, in tandem with the rise in contributors’ savings, it added.

"It is worth mentioning that our global investments had contributed 33% towards our total income for 2014 despite being only 23% of our total assets," said EPF Chairman Tan Sri Samsudin Osman in the statement.

“No doubt the end of 2014 had been challenging for the EPF due to the slump in the global oil prices. The weakening of the ringgit in the fourth quarter added further uncertainty. However, our prudent diversification approach had given us the edge and resilience to weather the economic conditions, particularly in the global markets,” he also pointed out.

Samsudin said in order to correspond with the fund’s objectives to preserve and add value to members’ savings, the EPF aims to provide at least a return of 2% above inflation over a three-year rolling period.

The dividend declared for 2014 is equivalent to a rolling three-year real return of 4.11% over inflation, he added.