Kuala lumpur: 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.

According to BERNAMA News Agency, Mohammad Ashraf emphasized that reserves accumulated during favourable periods could be utilized during downturns to support dividend payouts if annual returns fall short of target. He noted that this approach is crucial for LTAT, as it relies on realized investment returns to support dividend distributions to its contributors.

Currently managing assets worth approximately RM13 billion, LTAT requires active portfolio management to ensure each asset generates consistent income. Mohammad Ashraf mentioned the difficulty in maintaining steady dividend payments if too many assets fail to produce returns.

LTAT's strategic asset allocation (SAA), introduced in 2020, is undergoing its first revision covering the period through 2030. This revision forms the basis for restructuring its long-term investment portfolio. Mohammad Ashraf stated that under the plan, LTAT aims for allocations of around 20 per cent in listed equities and 20 per cent in fixed-income instruments.

An integral part of LTAT's strategy is the GEMPUR30 transformation plan, which focuses on strengthening investment structures and ensuring sustainable long-term returns. Through this plan, 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. This marks the fund's highest distribution in eight years, highlighting the success of its strategic initiatives.