KUALA LUMPUR: Domestic investments contributed RM31.71 billion or 47 per cent of the Employees Provident Fund’s (EPF) total investment income of RM66.99 billion in financial year 2023 (FY2023).
Meanwhile, global assets generated income of RM35.28 billion, or 53 per cent of its total investment income last year.
Of the RM66.99 billion total investment income, RM58.97 billion was generated from conventional savings, while the remaining RM8.02 billion was from Shariah savings.
“Shariah savings derived its income solely from its portion of the Shariah portfolio, while income for conventional savings is generated by both the Shariah and conventional portfolios,” it said in a statement today.
EPF said its investment assets stood at RM1.135 trillion as at December 2023, of which 62 per cent was invested domestically.
On the investment portfolio performance in 2023, EPF said the equities asset class contributed RM39.05 billion after netting off write-downs, accounting for 58 per cent of the EPF’s total investment income with a return on investment (ROI) of 8.68 per cent.
“The increase in income (2022:RM27.12 billion) was mainly due to higher capital gains following better market conditions,” it said, adding that private equity investments generated an ROI of 9.69 per cent last year.
EPF said fixed income instruments, mainly Malaysian Government Securities, continued to be the anchor for the portfolio in maintaining steady returns.
The asset class contributed RM19.74 billion, or 30 per cent of its total investment income, yielding an ROI of 4.41 per cent last year.
The growth (2022:RM18.15 billion) is in line with its expanding asset size, mainly contributed by interest and profit income from bonds and sukuk, it said.
Real estate and infrastructure income rose 8.0 per cent year-on-year (y-o-y) to RM6.03 billion in 2023, recording an ROI of 5.04 per cent, while income from money market instruments more than doubled y-o-y to RM2.17 billion in 2023, delivering an ROI of 4.93 per cent, it added.
EPF said fixed income instruments made up 46 per cent of its investment assets, while the rest were made up of equities (42 per cent), real estate and infrastructure (7.0 per cent) and money market instruments (5.0 per cent). -Bernama
