EPF posts RM18.31bil investment income in Q1, total assests at RM1.26tril
KUALA LUMPUR: The Employees Provident Fund (EPF) posted a total investment income of RM18.31 billion for the first quarter ended March 31, 2025.
This was 13 per cent lower than the RM20.99 billion recorded in the corresponding period in 2024, the country's pension fund said.
As of March this year, the EPF's total investment assets stood at RM1.26 trillion, up from RM1.25 trillion as at December 2024, with 38 per cent invested internationally.
EPF, in a statement today, said the total investment income included RM1.02 billion mark-to-market gains on securities that have not been realised, due to foreign exchange rate fluctuations.
"In line with the EPF's policy, these gains will not be distributable as dividends," it added.
During the quarter under review, equities contributed RM10.81 billion, a 23 per cent decline from RM14.02 billion recorded in the first quarter of 2024 (1Q24).
The fund attributed the decline to underperformance in global equity markets and a difficult investment environment.
"The asset class continued to be the highest contributor, accounting for 59 per cent of total investment income," it said.
Fixed income investments remained a key pillar for capital preservation by the EPF, generating RM5.99 billion to account for 33 per cent of the total investment income.
"Fixed income, comprising Malaysian government securities and equivalents, loans and bonds, continues to fulfil its dual mandate of delivering stable returns and as a counterbalance to equity market fluctuations.
"This underscores its strategic importance in safeguarding members' savings across market cycles," the EPF said.
Real estate and infrastructure recorded an income of RM1.08 billion in 1Q25, while money market instruments generated RM0.43 billion.
Of the total investment income, RM15.87 billion was generated for Simpanan Konvensional, and RM2.44 billion for Simpanan Syariah.
During the quarter, international investments generated RM8 billion or 44 per cent of the total investment income, the fund said.
Its domestic investment, which accounts for 62 per cent of its total assets, continues to provide long-term income stability through dividends, interests and profits from sukuk.
"The EPF remains committed to supporting Malaysia's economic growth by continuing to invest over 70 per cent of its annual allocation in the domestic market.
"This reflects its role as a long-term investor and aligns with the government's Ekonomi Madani framework," it added.
EPF chief executive officer Ahmad Zulqarnain Onn noted that global markets became volatile in early 2025 due to renewed trade tensions and policy uncertainty.
He said although the US administration officially announced tariffs on April 2, the uncertainty surrounding US trade policies had already started to impact major stock markets throughout the quarter.
"Despite the moderation of inflationary pressures in many economies, the pace and timing of monetary policy easing differed across regions, dampening risk appetites.
"Our diversified global portfolio cushioned the impact and kept the EPF on course for long-term value creation," he said.
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