KUALA LUMPUR: Despite continuous uncertainties from the ongoing Covid-19 pandemic, the Employees Provident Fund (EPF) recorded a gross investment income of RM19.29 billion for the first quarter this year.
Its equities registered RM14.28 billion in income during the first quarter, accounting for 74 per cent of total gross investment income, while fixed income instruments continued to contribute a stable income of RM3.92 billion.
"Income from real estate and infrastructure, as well as money market instruments, came in at RM0.71 billion and RM0.38 billion respectively.
"After the cost write-down on listed equities, which is a prudent measure practiced by the EPF to ensure that its long-term investment portfolio remains healthy, the fund recorded a net investment income of RM19.24 billion."
Its chief executive officer Datuk Seri Amir Hamzah Azizan said EPF's solid performance for the first quarter was a spill-over from the global economic recovery that began in the second-half of last year.
"We believe the vaccination rollouts as well as supportive fiscal and monetary policies worldwide will play a key role in facilitating economic activities and growth.
"The inflationary concerns did not derail the positive trend in the equity markets, and we took advantage of the opportunity to reposition our holdings in stocks that are fundamentally strong but undervalued," he said in a statement today.
EPF's investment assets stood at RM981.71 billion as at end March, of which 36 per cent was invested overseas.
The diversification in different asset classes, markets, and currencies continues to provide income stability and added value to the fund's overall returns.
During the first quarter, EPF's overseas investments generated an income of RM11.15 billion, or 58 per cent of the total gross investment income recorded, mainly driven by foreign equities.
Meanwhile, to date, a total RM57.97 billion of i-Sinar withdrawals have been approved for 6.49 million applicants, of which RM50.93 billion has been disbursed, while RM20.80 billion has been paid out to 5.27 million members under the i-Lestari facility.
Amir said disciplined investment approaches and robust liquidity management guided by strategic asset allocation (SAA) has been successful in minimising the impact of the substantial disbursements on the EPF's portfolio, allowing it to sustain a steady performance in these trying times.
"This reflects the fund's commitment to safeguarding our members' retirement savings by preserving and enhancing the value of those savings, while ensuring that their short-term needs are met without compromising their long-term interests.
"While EPF remains cautious for the coming quarter, given the downside risks of the new highly transmissible Covid-19 variants, we assure members that we continuously take the necessary measures to protect their savings.
"This is supported by our strong governance framework, as we strive to meet our mandate and strategic targets of providing members with a sustainable retirement."