KUALA LUMPUR: Lembaga Tabung Haji (TH) will continue to manage its investment portfolio prudently to ensure capital preservation and sustainable dividend returns despite global economic challenges in 2025.
TH chief executive officer Datuk Syed Hamadah Syed Othman said this is because market uncertainty is expected to intensify due to the risk of economic slowdown and trade wars between major global economies.
"TH’s investments are based on a structured asset allocation strategy, with approximately 55 per cent invested in sukuk, 27 per cent in the stock market, and the remainder in real estate and money market instruments.
"On safe investments, TH focuses on conservative assets such as Shariah-compliant sukuk and money market instruments which are less risky compared to private equity,” he said at the announcement of TH’s profit distribution for the 2024 financial year today.
The pilgrims’ fund board announced a profit after zakat distribution of 3.25 per cent for the 2024 financial year today, its highest in seven years.
He also stated that 90 per cent of TH’s assets are invested domestically, including in the Bursa Malaysia stock market, AA- and AAA-rated sukuk, as well as income-generating properties through rental returns.
Responding to a question about TH’s plans for gold investments, Syed Hamadah stressed that there are no such plans, as gold investments are not among the assets approved by the board.
Commenting on the differences between the pilgrims’ fund board and other investment institutions, he said TH is a unique institution that tailors its investment strategy based on specific risk tolerance and liquidity levels.
"Another unique aspect of TH is that its investment profits are used to pay zakat on behalf of depositors, something that most other financial institutions do not do,” he said.
On dividend rates, Syed Hamadah said TH consistently strives to offer competitive returns to depositors.
"The announced dividend rate is in line with or higher than the one-year Islamic deposit rate, and this year, we have delivered a return of 3.25 per cent, which is above the average Islamic deposit rate for 2024.
"TH is also targeting a better dividend rate this year, depending on global and domestic economic conditions,” he added. - Bernama
