LTAT declares higher dividend of 3.5% for 2020

The Armed Forces Fund Board (LTAT) has declared an improved dividend of 3.5% for the financial year ended Dec 31, 2020 (FY20), compared with 2.5% in 2019, on the back of a higher net profit amounting to RM229 million compared with RM92.8 million in 2019.

Senior Minister of Defence Datuk Seri Ismail Sabri Yaakob said the results were achieved amid the challenging economic climate brought about by the Covid-19 pandemic, which caused much upheaval and market volatility in 2020. LTAT was also affected by lower dividends received from investment companies during the year.

“A key contributing factor to LTAT’s improved results was also the successful implementation of high-impact initiatives via LTAT’s Transformation Plan. This enabled the fund to record an increased retained profit of RM287.5 million after payment of dividends amounting to a total of RM310.7 million, compared with the retained profit of RM63.5 million in 2019,” he said in a statement.

As at Dec 31, 2020, LTAT’s assets under management stood at RM9.6 billion.

“The government is conscious that the welfare of our frontliners, particularly serving members of the armed forces, must continue to be a priority. Towards this end, we are pleased to support LTAT in order to ensure improved dividends for the year.”

LTAT will continue to enhance prospects via its Transformation Plan, premised on strengthening and rebalancing its investment portfolio while improving its organisational structure, risk management, corporate governance practices as well as human capital development.

The fund is in the third year of this transformation journey, with 41 and 53 initiatives implemented in 2019 and 2020 respectively. An additional 77 initiatives are set to be rolled out this year, with a view towards strengthening the operational and financial performance of the Fund and its subsidiaries.

“It is encouraging to note that the LTAT Strategic Asset Allocation Framework was approved by the board in November 2020, with the aim of optimising long-term returns with appropriate risk levels. In 2021, the fund has commenced the process of restructuring its investment portfolio in stages, with a strong focus on fixed income instruments as well as improving its public equity investment.

“We expect LTAT to deliver on these efforts for the benefit of serving members of the armed forces who have fought to protect the rakyat against the pandemic during these challenging times,” Ismail Sabri said.