EPF records RM39.3b gross investment income for 9M22

This is a decrease of 18% from the amount recorded in 9M21

THE Employees Provident Fund (EPF) recorded a total gross investment income (GII) of RM39.31 billion for the nine months ended Sept 30, 2022 (9M22), a decrease of 18% or RM8.71 billion from the RM48.02 billion recorded in 9M21.

Total GII for the third quarter ended Sept 30, 2022 (3Q22), amounted to RM12.32 billion, a decrease of RM1.65 billion or 12%, compared to RM13.97 billion in 3Q21. 

However, quarter-on-quarter, the total GII achieved in 3Q22 was 11% higher compared to the RM11.14 billion recorded in 2Q22, EPF said in a statement today.

CEO Datuk Seri Amir Hamzah Azizan attributed 3Q22’s better performance to the stabilised market conditions for both equity and fixed-income investments.

“There are ongoing concerns that high-interest rates will lead to a global recession, exacerbated by continuing geopolitical risks and interest rate hikes by the US Federal Reserve (Fed). 

“However, notwithstanding these challenges, EPF’s disciplined investment approach, guided by its robust strategic asset allocation and active portfolio management, helped to cushion the impact and allowed EPF to deliver a steady performance, driven by the strong rebound in the domestic market,” he said.

In 3Q22, equities accounted for 45% of EPF’s total GII at RM5.49 billion, while fixed-income instruments — comprising Malaysian Government Securities and equivalents, as well as loans and bonds — contributed 39% or RM4.77 billion.

Real estate and infrastructure registered an income of RM1.67 billion, while income from money market instruments stood at RM390 million, in line with the expectations set for these asset classes.

In 3Q22, EPF’s overseas investments, which make up 36% of its total investment assets, continued to be a major contributor to its income at RM5.28 billion or 43% of its total GII.

Meanwhile, as of September 2022, EPF’s assets under management stood at RM961.01 billion.

Despite the numerous macroeconomic challenges, EPF’s asset growth remained healthy, as contributions received for 9M22 amounted to RM63.61 billion.

“From an investment standpoint, EPF remains resilient and focused on what we can control, namely asset allocation, costs and an overarching strategy that emphasises long-term sustainability of our investments and returns, in line with our strategic asset allocation.

“Though the uncertainty in international markets continues to be a strong concern, we are taking a ‘cautiously optimistic’ stance as we are not ignoring indicators that may suggest improvement in the macroeconomic outlook, such as the possible peak in global inflation and the Fed’s hints that interest rate increases will begin to slow in the coming months,” added Amir Hamzah. — Bernama