THE Employees Provident Fund (EPF) has reported that its total investment assets amounting to RM1.25 trillion, with 63% of these assets invested within Malaysia’s domestic market as of December 31, 2024.
Tan Sri Mohd Zuki Ali, Chairman of EPF, highlighted that domestic investments contributed RM37.02 billion, representing 49.7% of the fund's total investment income, which played a key role in providing stability to the EPF's overall performance.
“Global investments generated RM37.44 billion, accounting for 50.3% of the total investment income,” Bernama cite him saying today.
For the year ending December 31, 2024, the EPF recorded a total investment income of RM74.46 billion, of which RM63.59 billion was derived from Simpanan Konvensional and RM10.87 billion from Simpanan Shariah.
In a significant restructuring effort, the EPF fully separated its Simpanan Konvensional and Simpanan Shariah portfolios starting in January 2024.
This separation allows each portfolio to strategically optimise returns through tailored asset allocation strategies, ensuring a more independent and focused approach to investment management.
The move also strengthens diversification by ensuring that the assets of both portfolios are well-distributed across different asset classes, regions, markets, and industries, fostering long-term sustainability in returns.
Equities Drive EPF’s Strong Investment Returns
Equities were the largest contributor to the EPF's investment income for 2024, generating RM49.79 billion after factoring in write-downs, which accounted for 67% of the total investment income. The equity asset class posted a return on investment (ROI) of 9.90%.
“The increase in income, surpassing the RM39.01 billion recorded in 2023, was due to the fund managers' proactive approach in taking advantage of market fluctuations, coupled with the strong performance of global equity markets,” the board explained.
The EPF’s equity investments also saw a reduction in value, with write-downs amounting to RM0.72 billion.
Private Equity, Fixed Income, and Other Asset Classes Perform Steadily
Private equity, which makes up nearly 10% of EPF’s equity investments, recorded an impressive ROI of 11.33%.
Meanwhile, fixed-income instruments continued to anchor the EPF's portfolio by providing stable returns and mitigating the impact of short-term market volatility.
These instruments, which are predominantly made up of Malaysian Government Securities, contributed RM21.91 billion, or 29% of total investment income for 2024, with an ROI of 4.27%.
The increased income, compared to the RM19.74 billion recorded in 2023, reflects the growing asset size of the EPF.
Real estate and infrastructure investments generated RM1.64 billion, yielding a solid ROI of 5.13% on a constant currency basis. However, income from money market instruments was slightly lower, at RM1.12 billion, delivering an ROI of 1.89%.
The EPF noted that most of its money market investments are denominated in non-ringgit currencies, and as the ringgit strengthened against the US dollar over the year, the overall performance was somewhat impacted by foreign exchange translation.
Asset Allocation Breakdown
As of December 31, 2024, fixed-income instruments made up 46.2% of EPF’s investment assets, while equities comprised 43.5%.
Real estate and infrastructure investments accounted for 6.3%, and money market instruments made up 4% of the EPF’s total assets.
This balanced approach to asset allocation reflects the EPF's commitment to ensuring long-term sustainability, providing steady returns, and maintaining robust diversification across various investment categories. – March 1, 2025
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