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New Straits Times
6 days ago
- Business
- New Straits Times
EPF posts RM18.31bil investment income in Q1, total assests at RM1.26tril
KUALA LUMPUR: The Employees Provident Fund (EPF) posted a total investment income of RM18.31 billion for the first quarter ended March 31, 2025. This was 13 per cent lower than the RM20.99 billion recorded in the corresponding period in 2024, the country's pension fund said. As of March this year, the EPF's total investment assets stood at RM1.26 trillion, up from RM1.25 trillion as at December 2024, with 38 per cent invested internationally. EPF, in a statement today, said the total investment income included RM1.02 billion mark-to-market gains on securities that have not been realised, due to foreign exchange rate fluctuations. "In line with the EPF's policy, these gains will not be distributable as dividends," it added. During the quarter under review, equities contributed RM10.81 billion, a 23 per cent decline from RM14.02 billion recorded in the first quarter of 2024 (1Q24). The fund attributed the decline to underperformance in global equity markets and a difficult investment environment. "The asset class continued to be the highest contributor, accounting for 59 per cent of total investment income," it said. Fixed income investments remained a key pillar for capital preservation by the EPF, generating RM5.99 billion to account for 33 per cent of the total investment income. "Fixed income, comprising Malaysian government securities and equivalents, loans and bonds, continues to fulfil its dual mandate of delivering stable returns and as a counterbalance to equity market fluctuations. "This underscores its strategic importance in safeguarding members' savings across market cycles," the EPF said. Real estate and infrastructure recorded an income of RM1.08 billion in 1Q25, while money market instruments generated RM0.43 billion. Of the total investment income, RM15.87 billion was generated for Simpanan Konvensional, and RM2.44 billion for Simpanan Syariah. During the quarter, international investments generated RM8 billion or 44 per cent of the total investment income, the fund said. Its domestic investment, which accounts for 62 per cent of its total assets, continues to provide long-term income stability through dividends, interests and profits from sukuk. "The EPF remains committed to supporting Malaysia's economic growth by continuing to invest over 70 per cent of its annual allocation in the domestic market. "This reflects its role as a long-term investor and aligns with the government's Ekonomi Madani framework," it added. EPF chief executive officer Ahmad Zulqarnain Onn noted that global markets became volatile in early 2025 due to renewed trade tensions and policy uncertainty. He said although the US administration officially announced tariffs on April 2, the uncertainty surrounding US trade policies had already started to impact major stock markets throughout the quarter. "Despite the moderation of inflationary pressures in many economies, the pace and timing of monetary policy easing differed across regions, dampening risk appetites. "Our diversified global portfolio cushioned the impact and kept the EPF on course for long-term value creation," he said.
Borneo Post
7 days ago
- Business
- Borneo Post
EPF records total investment income of RM18.31 bln for 1Q 2025
File photo for illustration purposes KUALA LUMPUR (June 4): The Employees Provident Fund (EPF) recorded investment income totalling RM18.31 billion for the first quarter ended March 31, 2025 (1Q 2025), a 13 per cent decline from RM20.99 billion in the corresponding period in 2024. It said the total investment income includes RM1.02 billion mark-to-market gains on securities that have not been realised, due to foreign exchange rate fluctuations. In line with the EPF's policy, these gains will not be distributable as dividends. EPF chief executive officer Ahmad Zulqarnain Onn noted that global markets turned volatile early in 2025 on renewed trade frictions and policy uncertainty. He added that uncertainties surrounding US trade policies affect major stock markets throughout the quarter although the tariff announcement was made by the US administration on April 2. 'Despite the moderation of inflationary pressures in many economies, the pace and timing of monetary policy easing differed across regions, dampening risk appetites. Our diversified global portfolio cushioned the impact and kept the EPF on course for long-term value creation,' Ahmad Zulqarnain said in a statement yesterday. During 1Q 2025, equities contributed RM10.81 billion, a 23 per cent decline from RM14.02 billion recorded in 1Q 2024 mainly due to weaker performance across global equity markets and a challenging investment climate. EPF said equities continued to be the highest contributor, accounting for 59 per cent of total investment income while fixed Income continued to anchor capital preservation, contributing RM5.99 billion or 33 per cent of total investment income. Fixed income, comprising Malaysian Government securities and equivalents, loans and bonds, continued to fulfil its dual mandate of delivering stable returns and as a counterbalance to equity market fluctuations. Real estate and infrastructure recorded an income of RM1.08 billion in 1Q 2025, while money market instruments generated RM0.43 billion, in line with return expectations for these asset classes. Of the total investment income, RM15.87 billion was generated for conventional savings and RM2.44 billion for shariah savings. As of March 2025, EPF's investment assets totalled RM1.26 trillion, with 38 per cent invested internationally. During the period, international investments generated RM8 billion or 44 per cent of the total investment income. The EPF said its domestic investments, which account for 62 per cent of total assets, continued to provide long-term income stability through dividends, interests and profits from sukuk. It added that the EPF remains committed to supporting Malaysia's economic growth by continuing to invest over 70 per cent of its annual allocation in the domestic market. Meanwhile, Ahmad Zulqarnain said the downward revisions in global and regional growth forecasts, including Malaysia's, reflect rising external risks amid shifting global trade dynamics. 'In a more challenging and uncertain market environment, the EPF maintains a dynamic and well-diversified portfolio to help safeguard value and manage downside risks. We continue to actively explore investment opportunities across both domestic and international markets to strengthen our portfolio and support long-term, sustainable returns for our members,' he added. During the period, the EPF registered 140,111 new members, raising total membership to 16.3 million. Of these, 8.88 million are active members, representing 51.3 per cent of the 17.31 million labour force. The EPF's active-to-inactive member ratio remained stable at 54:46 in 1Q 2025. New employer registration reached 19,600 in the first quarter of this year, increasing total active employers registered with the EPF to 616,558. Total contributions increased by 15.1 per cent to RM33.54 billion, up from RM29.13 billion in 1Q 2024 while total voluntary contributions rose by 62 per cent to RM7.02 billion, from RM4.33 billion a year earlier. The EPF said the number of formal sector members contributing above the statutory rate was 10,990 in 1Q 2025, compared to 6,771 in the same period last year. – Bernama Employees Provident Fund first quarter investment income
The Star
7 days ago
- Business
- The Star
EPF hit by global challenges
PETALING JAYA: Subdued global markets due to geopolitics and economic uncertainty led the Employees Provident Fund (EPF) to record a 13% year-on-year decrease in investment income in the first quarter of the (1Q25). The retirement fund made total investment income of RM18.31bil in the period, compared with the RM20.99bil it recorded for the same quarter last year. It's worth noting that the last time EPF recorded a lower investment income was in 1Q22, where RM15.85bil was recorded as opposed to the RM19.29bil recorded in 1Q21. EPF chief executive officer Ahmad Zulqarnain Onn said the decrease in the latest quarter was due to global markets turning volatile early in the year from trade frictions and policy volatility. 'While the announcement of tariffs was made by the US administration on April 2, uncertainty surrounding US trade policies had begun to affect major stock markets throughout the quarter,' he said in a release yesterday. Even as inflationary pressures in many economies began to moderate, the pace and timing of monetary policy easing differed across regions, thus dampening risk appetites. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid told StarBiz the decline in global equity markets, especially over US policies on trade, was likely the main contributing factor for a weaker period for the fund. He said the 1Q25 numbers were hardly surprising since equity investments were EPF's main income driver, accounting for 59% of total income for the quarter. 'Nonetheless, we have seen global equities rebound during the month of May and perhaps it may continue in June,' he said. 'This may help the fund performance going forward.' According to Ahmad Zulqarnain, EPF's diversified global portfolio cushioned the impact and kept the institution on course for long-term value creation. Afzanizam agreed, saying well diversified portfolios have ensured EPF investment performance will continue to be mitigated through large exposure in the fixed income markets, constituting 48% of total assets that will act to ensure capital preservation. 'To some degree, it can also play a role as capital appreciation in light of the expected decline in global interest rates and the inverse relationship between bond prices and interest rate where bond prices will rise as interest rates go lower,' he said. So, what can Malaysians expect for the rest of the year? Afzanizam said there is bound to be some improvement in returns for the fund in the second half of this year. EPF's performance will hinge on predominantly US trade policies particularly as the 90-day pause comes to an end in July. 'The situation is extremely fluid, concerns over US government finances along with elevated geopolitical risks will result in cautious sentiment in the global equities market,' he said. Likewise, Rakuten Trade head of equity sales, Vincent Lau believes financial markets will rebound in the second half of this year. He said as tariff tensions are being ironed out, there will be a higher chance that economies globally, including Malaysia's economy, will pick up and recover. 'We can expect the White House to come up with a statement of some sort soon, and by the time that happens, things will get better,' he said. Despite some analysts cutting valuation on the FBM KLCI, Lau said bond yields have come down a little and even bitcoin is at an all-time high. 'This shows that people are still willing to take risks. To add to that, the EPF's portfolio is very diversified. Backed by last year's high dividends, there's a good chance for EPF to make a stronger comeback.' Economist Geoffrey Williams said judging by how the FBM KLCI has somewhat recovered after the 90-day tariff pause, causing it to gain 13% in the middle of May – this however was not sustained. Williams said the reason behind it was profit taking and continued uncertainty. 'So if the tariff issue improves, then there could be a rebound but Malaysian equities remain volatile,' he opined. As for EPF's earnings results, Williams said both domestic and global market volatility impacted results. However, he reckons a domestic focus on investments are holding back returns, thus more options for overseas investment would be better for EPF members. During the period, international investments generated RM8bil or 44% of the total investment income. EPF said its domestic investments, which account for 62% of total assets, have continued to provide long-term income stability through dividends, interest and profits from sukuk. As of March 2025, EPF's total investment assets stood at RM1.26 trillion, with 38% invested internationally. The FBM KLCI is down around 8% this year and has fallen around 14% since highs in 2018 so this is a long-term trend in domestic equities. By contrast the Dow Jones is flat for the year so far having fallen around 16% from its peak in January to lows in April. It has recovered some of its losses, its long-term performance is much better and it is up more than 75% since 2018. Hence, overseas equity markets do offer better returns than local equities. Meanwhile, as the International Monetary Fund has lowered its global growth forecast for this year to 2.8%, Malaysia's real gross domestic product growth forecast for 2025 is expected to be slightly lower than the original forecast of 4.5% to 5.5%. The fund is prepared for this. 'In a more challenging and uncertain market environment, the EPF maintains a dynamic and well-diversified portfolio to help safeguard value and manage downside risks. 'We continue to actively explore investment opportunities across both domestic and international markets to strengthen our portfolio and support long-term, sustainable returns for our members,' Ahmad Zulqarnain concluded. Of the total investment income, RM15.87bil was generated for Simpanan Konvensional and RM2.44bil for Simpanan Syariah. The fund added it is committed to invest over 70% of its annual allocation in the domestic market. This reflects its role as a long-term investor and aligns with the government's Ekonomi Madani framework. 'Through the GEAR-uP initiative, the EPF is focused on building investment opportunities in the healthcare sector,' it added.
Malaysia Sun
7 days ago
- Business
- Malaysia Sun
Malaysia's pension fund EPF investment income falls in Q1
Xinhua 03 Jun 2025, 17:15 GMT+10 KUALA LUMPUR, June 3 (Xinhua) -- Malaysia's largest state pension fund, the Employees Provident Fund (EPF), said Tuesday that it recorded total investment income of 18.31 billion ringgit (4.31 billion U.S. dollars) for the first quarter ended March 31, 2025, a 13 percent decline from 20.99 billion ringgit in the corresponding period in 2024. EPF chief executive officer Ahmad Zulqarnain Onn said in a statement that global markets turned volatile early in 2025 on renewed trade frictions and policy uncertainty. He said that despite the moderation of inflationary pressures in many economies, the pace and timing of monetary policy easing differed across regions, dampening risk appetites. "We continue to actively explore investment opportunities across both domestic and international markets to strengthen our portfolio and support long-term, sustainable returns for our members," he added. As of March 2025, EPF's total investment assets stood at 1.26 trillion ringgit, with 38 percent invested internationally. (1 ringgit equals 0.24 U.S. dollar)
Malaysiakini
7 days ago
- Business
- Malaysiakini
EPF records RM18.31b investment income for Q1, down 13 pct
The Employees Provident Fund (EPF) recorded investment income totalling RM18.31 billion for the first quarter ended March 31, 2025 (1Q 2025), a 13 percent decline from RM20.99 billion in the corresponding period in 2024. It said the total investment income includes RM1.02 billion mark-to-market gains on securities that have not been realised, due to foreign exchange rate fluctuations. In line with the EPF's policy, these gains will not be distributable as dividends. EPF CEO Ahmad Zulqarnain Onn noted that...
