6 days ago
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PETALING JAYA: The Employees Provident Fund (EPF) recorded a gross investment income of RM17.33 billion for the third quarter ended Sept 30, amid continued volatility in the capital markets in an operating environment overshadowed by the Covid-19 pandemic.
For the quarter, equities s contributed RM7.29 billion or 42% to total gross investment income, while fixed income instruments, registered RM8.18 billion. Real estate and infrastructure, as well as money market instruments, contributed RM1.63 billion and RM230 million, respectively.
Net investment income came in at RM16.87 billion.
CEO Alizakri Alias said the year has seen great volatility in the financial markets which saw very rapid movements from one extreme to the other.
“Our financial positions over the first three quarters have been affected by the volatility in market sentiments exacerbated by the uncertainties of the pandemic and continued fragile consumer sentiments.”
As at end-September, EPF’s investment assets stood at RM941.77 billion, of which 68% was allocated to the domestic market while 32% was allocated to the overseas markets, which contributed 45% to gross investment income for the third quarter.
By asset class, fixed income instruments made up 49% of investments while equities comprised 39%. Money market instruments and real estate and infrastructure made up 7% and 5% respectively of investments.
Looking ahead, Alizakri said although the EPF is guided by its strategic asset allocation, much depends on rapid and effective responses to the pandemic that must address the massive impact to the economy and ensuring the continuity of businesses, jobs and lives.
“For Malaysia, as a trade-dependent country, the continued uncertainties surrounding the global economic recovery will have an impact on external demand which may then affect the job landscape and curb domestic economic activities,” he added.
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