KUALA LUMPUR:The Employees Provident Fund (EPF) posted a total distributable income of RM36.70 billion for the six months ended June 30 2024 (1H24).
This was a 29 per cent increase from RM28.40 billion in the corresponding period in 2023.
The EPF's total distributable income for the second quarter after write-downs was RM17.50 billion, up 25 per cent from RM13.98 billion in the same quarter last year.
The fund said that the distributable income excludes unrealised mark-to-market gains.
For the second quarter of 2024 (2Q24), equity investments were the largest income contributor, generating RM10.75 billion after write-downs, which made up 61 per cent of the total distributable income.
The better performance in equity markets, both locally and globally, led to higher income compared with 2Q23.
Meanwhile, fixed income assets provided stability, contributing 33 per cent or RM5.72 billion, while real estate, infrastructure, and money market instruments added RM0.50 billion and RM0.53 billion, respectively.
EPF chief executive officer Ahmad Zulqarnain said favourable market conditions, both in Malaysia and internationally, contributed to a 29 per cent growth in the first half of 2024, with assets under management increasing to RM1.21 trillion.
He said the Malaysian market has benefited from increasing investor interest in growth oriented policies and fiscal reforms.
Meanwhile, the international markets such as the US benefited from continued solid macroeconomic conditions, declining inflation and anticipation of the beginning of an interest rate reduction cycle.
"Despite relatively calm market conditions, risks persist as illustrated in the recent sell-down in global markets and sharp increases in volatility caused by market participants unwinding some concentrated and crowded positions."As a long-term investor, the EPF will continue with its strategy of constructing a highly diversified portfolio driven by its strategic asset allocation," he said.
As of June 30, the EPF's investment assets totaled RM1.2 trillion, with 38 per cent allocated to overseas investments.
These international investments generated 49 per cent of the fund's income, amounting to RM8.64 billion in the second quarter.
The EPF said over 80 per cent of the EPF's new investment allocation was directed to the domestic market, and its remains dedicated to supporting and contributing towards achieving the goals outlined in the Madani Economy Framework.
Of the total distributable income, RM31.34 billion was allocated to Simpanan Konvensional, and RM5.36 billion to Simpanan Shariah.