KUALA LUMPUR: The Employees Provident Fund (EPF) generated investment income of RM10.11bil in the third quarter ended Sept 30, 3013 (Q3, 2013), up 44% from RM7.02bil a year ago, boosted by equities investment.
Its chief executive officer Datuk Shahril Ridza Ridzuan said on Monday the performance was mainly driven by a “more robust equity market on both domestic and foreign front, coupled with a significant rise in trading volume in the third quarter”.
He said the EPF also benefited from higher dividend payouts from listed companies due to improved earnings.
Equities continued to generate a higher proportion of investment in come in Q3, 2013, amounting to RM5.71bil or an increase of RM3.37bil compared with RM2.34bil a year ago.
Investment income from real estate and infrastructure assets surged from RM54.62 million in Q3, 2012 to RM429.16mil in Q3 2013.
EPF said the higher income from equities helped offset a fall in income from loans and bonds, which declined to RM2.28bil from RM3.06bil a year ago.
Income from Malaysian Government Securities and equivalents in Q3, 2013 increased by 0.18% to RM1.55bil and money market instruments contributed RM145.23 million.
“The EPF continues to diversify its investments across markets, sectors and asset classes to provide optimal sustainable returns in the long term. Our global investments offer stable returns on a long-term basis, befitting our risk-return appetite as a retirement fund.
“We are also able to find opportunities from, and reduce the risk of, asymmetric market movements, such as the improvement in global developed economies and the selldown in emerging market currencies,” Shahril said.
As at Q3, 2013, the EPF’s total overseas exposure accounted for 20.39% of its total investment assets based on book value, up from 18.97% in Q2, 2013.
In Q3, 2013, an additional US$2.50bil of overseas investments were made, of which US$2.25bil was channelled into global equity mandates and the balance invested in global bonds, infrastructure and private equities.