EPF 1H investment income up 25% to RM34.05b


EPF Chief Executive Officer Datuk Seri Amir Hamzah Azizan said, “The EPF delivered a resilient performance in 1H 2021 driven by the progressive recovery of the equity markets and most asset classes amid the global rebound."

KUALA LUMPUR: The Employees Provident Fund (EPF) recorded RM34.05bil of total investment income for the first half of the year ended June 30, 2021, underpinned by equities while its diversification continued to provide income stability and added value to its overall return.

In a statement on Friday, it said this was increase of RM6.79bil, or 25%, compared with RM27.26bil a year ago.

Total gross investment income for the second quarter (2Q 2021) was RM14.77bil, or RM0.35bil lower than RM15.12bil a year ago.

The retirement fund said equities continued to be the main contributor of income for 2Q 2021 at RM7.89bil, accounting for 53% of total gross investment income.

"As part of its internal policy to ensure a healthy portfolio, the EPF has adopted cost write- downs on listed equities. In 2Q, 2021, RM0.21bil was written down for listed equities, compared to RM1.66bil in the same quarter in 2020 following the continued recovery across global markets.

"After netting off these write-downs, a total of RM14.56bi of investment income was recorded in 2Q 2021, 8% higher than the RM13.46bil recorded in 2Q 2020," it said.

EPF chief executive officer Datuk Seri Amir Hamzah Azizan said, “The EPF delivered a resilient performance in 1H 2021 driven by the progressive recovery of the equity markets and most asset classes amid the global rebound."

The EPF said fixed Income instruments continued to contribute a stable income of RM5.28bil, or 36%, to the gross investment income in Q2 2021. This was lower compared to the RM6.17bil recorded in 2Q, 2020 due to lower trading gains. This is in line with higher interest rates in 2Q 2021, compared to the corresponding period last year.

As for real estate and infrastructure, and money market instruments, meanwhile, recorded RM1.40bil and RM0.20bil respectively.

The EPF’s diversification into different asset classes, markets and currencies continued to provide income stability and added value to its overall return.

As at end June 2021, the EPF’s investment assets stood at RM989.14 bil, of which 37% was invested overseas.

In 2Q, 2021, overseas investments generated an income of RM8.71bil, 59% of the total gross investment income recorded.

It said fixed Income instruments continued to contribute a stable income of RM5.28bil, or 36%, to the gross investment income in Q2 2021. This was lower compared to the RM6.17 billion

recorded in Q2 2020 due to lower trading gains. This is in line with higher interest rates in 2Q 2021, compared to a year ago.

As for real estate and infrastructure, and money market instruments, they recorded RM1.40bil and RM0.20 billion respectively.

The EPF’s diversification into different asset classes, markets and currencies continued to provide income stability and added value to its overall return.

As at end June 2021, the EPF’s investment assets stood at RM989.14 billion, of which 37% was invested overseas. In 2Q, 2021, overseas investments generated an income of RM8.71bil, 59% of the total gross investment income recorded.

The EPF also said to assist members affected by the pandemic, the EPF launched the i-Sinar and i-Citra facilities to provide some financial relief. To date, this has involved the disbursement of a total of RM67.6bil.

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