Latest news with #StrategicAssetAllocation
Malaysian Reserve
2 days ago
- Business
- Malaysian Reserve
EPF shifts capital into private markets to navigate global volatility
by HIDAYATH HISHAM THE Employees Provident Fund (EPF) is focusing its investments in private markets and resilient sectors to maintain sustainable returns amid global financial uncertainty. Deputy Finance Minister Lim Hui Ying said this includes selective redeployment into asset classes such as private equity, real estate and infrastructure — areas with strong long-term growth potential. She was responding to a question from Pagoh MP Tan Sri Muhyiddin Yassin (Perikatan Nasional [PN]-Pagoh) on EPF's asset reallocation strategy in light of market volatility and declining returns. Lim said EPF applies a disciplined investment strategy guided by its Strategic Asset Allocation (SAA) framework, supported by a dynamic portfolio rebalancing mechanism and comprehensive risk management. 'EPF adopts a disciplined investment strategy based on SAA, with optimal fund distribution across various asset classes, geographies, mandates and strategies, taking into account predetermined risk tolerance limits,' she told the Dewan Rakyat today. Lim added that the strategy ensures the fund can respond proactively to market shifts while maintaining controlled risk exposure. In the first quarter of 2025 (1Q25), EPF recorded RM18.31 billion in investment income, down 13% from RM20.99 billion in the same period last year. Despite the decline, Lim said EPF remains committed to delivering competitive returns to contributors while continuing to support the domestic market. 'EPF continues to prioritise and support the local market and actively invests in domestic bonds and equities,' she said.
New Straits Times
30-07-2025
- Business
- New Straits Times
EPF investment income falls 13pct on weak global markets
KUALA LUMPUR: The Employees Provident Fund recorded a 13 per cent decline in investment income for the first quarter of this year, totalling RM18.31 billion compared with RM20.99 billion in the same quarter of 2024. Finance Minister Datuk Seri Anwar Ibrahim said the main factor contributing to the decline is the weak performance of the global equity market. "The 13 per cent decline in the first quarter of 2025 compared with the previous year is not related to the sale of overseas assets intended to support the ringgit value or the increased investment in the domestic equity market. "This situation stemmed from rising global trade tensions and the uncertain trade policies of the United States. "Although some central banks have begun easing monetary policies, concerns over global political instability, fiscal imbalances, and regional conflicts continue to dampen market sentiment and affect investor confidence," he said. He said this in a written parliamentary reply to Datuk Dr Zulkafperi Hanapi (IND-Tanjong Karang), who asked about the main factors that contributed to the decline and whether this is related to the sale of EPF's overseas assets to support the ringgit value and the increased investment in the domestic equity market. Anwar, who is also the prime minister, said the impact of this situation is reflected in EPF's returns from equity investments, which fell by 23 per cent to RM10.81 billion compared with RM14.02 billion in the first quarter of 2024. He said equity investments are the main contributor to EPF's investment income, representing 59 per cent of the total investment income in the first quarter of 2025. "Nonetheless, EPF will continue to adopt a disciplined investment approach guided by the Strategic Asset Allocation (SAA) to ensure sustainable investment performance in line with EPF's objective as a long-term retirement fund," he said.
The Sun
30-07-2025
- Business
- The Sun
EPF income drops 13% due to weaker equity markets, says MoF
KUALA LUMPUR: The Employees Provident Fund (EPF) saw its investment income fall by 13 per cent in the first quarter of 2025 (1Q 2025), recording RM18.31 billion compared to RM20.99 billion in the same period last year. According to the Ministry of Finance (MoF), the decline was mainly due to weaker equity market performance and had no connection to EPF's sale of foreign assets or increased investments in domestic equities aimed at supporting the ringgit. 'The weaker performance was largely driven by rising global trade tensions and the unpredictable trade policies of the United States,' the ministry said in a written reply published on the Dewan Rakyat portal. Although some central banks have begun loosening monetary policy, the MoF noted that investor sentiment remains fragile due to concerns over geopolitical instability, fiscal imbalances, and regional conflicts, all of which have weighed on market confidence. The response was issued in reply to a question from Tanjong Karang Member of Parliament Datuk Dr Zulkafperi Hanapi, who had asked about the main factors behind the drop in EPF's income and whether it was tied to the fund's overseas asset sales. The ministry said the impact of current market conditions was reflected in EPF's equity investment returns, which fell by two per cent to RM10.81 billion in 1Q 2025, down from RM14.02 billion in 1Q 2024. 'Equities remain the largest contributor to EPF's investment income, making up 59 per cent of the total in the first quarter of this year,' MoF said. Despite the softer performance, the ministry said that EPF will continue to follow a disciplined investment strategy guided by its Strategic Asset Allocation framework to ensure long-term, sustainable returns. - Bernama
The Star
29-07-2025
- Business
- The Star
Finance Ministry attributes EPF income drop to softer equity market performance
KUALA LUMPUR: The Employees Provident Fund (EPF) saw its investment income fall by 13% in the first quarter of 2025 (1Q 2025), recording RM18.31bil compared to RM20.99bil in the same period last year. According to the Finance Ministry, the decline was mainly due to weaker equity market performance and had no connection to EPF's sale of foreign assets or increased investments in domestic equities aimed at supporting the ringgit. "The weaker performance was largely driven by rising global trade tensions and the unpredictable trade policies of the United States," the ministry said in a written reply published on the Dewan Rakyat portal on Tuesday (July 29). Although some central banks have begun loosening monetary policy, the ministry said that investor sentiment remains fragile due to concerns over geopolitical instability, fiscal imbalances, and regional conflicts, all of which have weighed on market confidence. The response was issued in reply to a question from Tanjong Karang Member of Parliament Datuk Dr Zulkafperi Hanapi, who had asked about the main factors behind the drop in EPF's income and whether it was tied to the fund's overseas asset sales. The ministry said the impact of current market conditions was reflected in EPF's equity investment returns, which fell by two per cent to RM10.81 billion in 1Q 2025, down from RM14.02 billion in 1Q 2024. "Equities remain the largest contributor to EPF's investment income, making up 59 per cent of the total in the first quarter of this year," said the ministry. Despite the softer performance, the ministry said that EPF would continue to follow a disciplined investment strategy guided by its Strategic Asset Allocation framework to ensure long-term, sustainable returns. – Bernama
