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New Straits Times
5 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
5 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
Malaysiakini
6 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...
Malaysiakini
6 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...
Business Times
6 days ago
- Business
- Business Times
Malaysia's national pension fund EPF Q1 income drops on volatility
[KUALA LUMPUR] Malaysia's state retirement fund reported a 13 per cent year-on-year drop in investment income for the first three months of the year due to volatility in global markets. Investment income for the first quarter dropped to RM18.31 billion (S$5.5 billion) from RM20.99 billion a year ago, the Employees Provident Fund (EPF) said in a statement on Tuesday (Jun 3). Contribution from equities – the biggest asset class – slid 23 per cent from a year ago. 'Whilst the announcement of tariffs was made by the US administration on Apr 2, uncertainties surrounding US trade policies had begun to affect major stock markets throughout the quarter,' EPF chief executive officer Ahmad Zulqarnain Onn said in the statement. Total investment assets stood at RM1.26 trillion as of end-March, with 38 per cent invested internationally, the fund said. EPF is adopting a cautious outlook as concerns over global political instability, fiscal imbalances and regional conflicts continue to dampen market sentiment and undermine investor confidence. The retirement fund paid out its highest dividend rates in seven years for 2024, thanks to strong domestic markets and resilient economic growth. '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,' Ahmad Zulqarnain said. As of March, EPF had 16.3 million members, with 8.88 million of them active contributors – representing 51.7 per cent of Malaysia's 17.31 million labour force. BLOOMBERG
