EPF records RM34.05bil total investment income for 1H21

by AZREEN HANI/ pic by TMR

THE Employees Provident Fund (EPF) recorded RM34.05 billion of total investment income for the first half of the year ended 30 June 2021 (1H 2021).

This is an increase of RM6.79 billion, or 25%, compared to RM27.26 billion in the corresponding period in 2020.

Total gross investment income for the second quarter (Q2 2021) was RM14.77 billion, RM0.35 billion lower than RM15.12 billion recorded in the same quarter last year.

“The EPF delivered a resilient performance in 1H 2021 driven by the progressive recovery of the equity markets and most asset classes amid the global rebound,” EPF CEO Datuk Seri Amir Hamzah Azizan said.

“The accelerating roll-out of Cov -19 vaccines and the reopening of economies had supported a stronger performance for equities in the developed markets,” he added.

However, equities in the emerging markets were more muted, due to the resurgence of Covid-19 in Southeast Asian countries and tighter regulations imposed by China authorities on several sectors that had triggered a sharp decline in stock prices.”

Equities continued to be the main contributor of income for Q2 2021 at RM7.89 billion, accounting for 53% of total
gross investment income.

As part of its internal policy to ensure a healthy portfolio, the EPF has adopted cost writedowns on listed equities. In Q2 2021, RM0.21 billion was written down for listed equities, compared to RM1.66 billion in the same quarter in 2020 following the continued recovery across global markets.

After netting off these write-downs, a total of RM14.56 billion of investment income was recorded in Q2 2021, 8% higher than the RM13.46 billion recorded in Q2 2020.

Amir Hamzah added that the fund’s focus is to get EPF members to restore and rebuild their savings as the nation recovers from the pandemic.

“As we recover from the crisis, EPF’s focus is to help members restore and rebuild their retirement savings to ensure that they are able to secure a dignified retirement,” he said.