THE total gross investment income of the Employees’ Provident Fund (EPF) grew 7.7% year-on-year to RM48.02 bil for the nine months ended Sept 30, 2021 from RM44.60 bil in the same period in 2020.
Total gross investment income for the third quarter ended Sept 30 was, however, lower at RM13.97 bil from RM17.33 bil recorded in the corresponding quarter in 2020, EPF said in a statement.
Chief executive officer Datuk Seri Amir Hamzah Azizan said the third quarter had been volatile for equities in both the domestic and emerging markets, largely caused by concerns surrounding rising inflation and interest rates.
“On the other hand, the continued recovery of equities in the developed economies amid the heightened volatility has provided EPF the opportunity to capitalise additional gains,” he said.
According to EPF, equities continued to be the main contributor, accounting for 54% of total gross investment income at RM7.50 bil.
As part of its internal policy and a prudent measure to ensure a healthy portfolio, RM0.11 bil was written down for listed equities during the quarter, compared to RM0.13 bil in the corresponding period last year. After taking into account the cost write-down, RM13.86 bil of net investment income was recorded for the quarter.
EPF said fixed income instruments recorded a 36% contribution at RM5 bil in the third quarter, lower than the RM8.18 bil income generated in the same quarter in 2020, due to lower trading gains.
In addition, real estate and infrastructure, as well as money market instruments, contributed RM1.18 bil and RM0.29 bil, respectively.
Looking into helping those in the informal sector
As at September, EPF’s investment assets stood at RM988.55 bil, of which 36% was invested in overseas investments.
On the future outlook, Amir said the reopening of the economy was expected to support gradual recovery well into 2022, and in tandem, EPF would accelerate its efforts to help members rebuild their retirement savings as well as cast its social safety net wider.
“One of the big-ticket items for EPF further into 2022 is to refresh our mandate to remain relevant to more Malaysians in the informal sector as well as the contract for service workers, which now form the majority of the country’s labour force.
“This is important as we need to ensure that they have access to at least a minimum standard of living, even during unprecedented times,” he said. – Jan 11, 2022.
