EPF's 1Q Investment Income Down 13% To RM18.31 Billion

BusinessToday

6 days ago

The Employees Provident Fund (EPF) reported an investment income of RM18.31 billion for the first quarter ended March 31, 2025 (1Q25), marking a 13% decline from the RM20.99 billion recorded in the same period last year, as global market volatility and renewed trade tensions weighed on performance.
The EPF attributed the lower income primarily to a 23% drop in equities returns, which contributed RM10.81 billion compared to RM14.02 billion in 1Q24. Despite the decline, equities remained the largest contributor, accounting for 59% of total investment income.
Chief Executive Officer Ahmad Zulqarnain Onn said global markets turned volatile in early 2025, driven by renewed US trade frictions and persistent policy uncertainty, which dampened investor sentiment. The announcement of new US tariffs on April 2 further intensified uncertainty, impacting major stock markets throughout the quarter.
'Although inflationary pressures have eased in many economies, asynchronous monetary policy easing across regions has limited risk appetites.
'Nevertheless, the EPF's diversified global portfolio cushioned the impact and kept us on course for long-term value creation,' Ahmad Zulqarnain said.
He shared that fixed income instruments delivered RM5.99 billion, or 33% of total income, reinforcing the EPF's capital preservation strategy.
'Real estate and infrastructure contributed RM1.08 billion, while money market instruments generated RM0.43 billion, consistent with expectations.
'Of the total investment income, RM15.87 billion was for conventional savings, and RM2.44 billion for shariah savings,' he said, adding that a total of RM1.02 billion in unrealised gains from foreign exchange fluctuations were excluded from dividend distribution, in line with EPF's policy.
As of March 2025, EPF's total investment assets stood at RM1.26 trillion, with 38% invested internationally. International investments generated RM8 billion, or 44% of total investment income. Meanwhile, 62% of assets remained in domestic markets, which the fund said continues to provide long-term income stability.
Ahmad Zulqarnain reaffirmed EPF's commitment to supporting Malaysia's economic development, stating that over 70% of the annual investment allocation remains domestically focused.
Looking ahead, Ahmad Zulqarnain said the EPF will continue to maintain a dynamic, diversified portfolio to navigate risks and seek sustainable long-term returns for members.
'In a more challenging and uncertain market environment, we remain focused on strengthening our portfolio and exploring investment opportunities both domestically and abroad,' he added. Related