KUALA LUMPUR: The Employees Provident Funds (EPF) investment income rose by an impressive 29% to RM3.6bil for the second quarter ending June 30, compared with the preceding quarter.
Its total investment size as of June 30, amounted to RM272.2bil, a 2% increase compared with the previous quarter.
In a statement here yesterday, the EPF said that although it was conservative in the equities market, its income increased to RM720mil in the second quarter, a growth of 327.67% compared with the first quarter.
This was because there were pockets of opportunities in the local stock market that allowed for higher-than-normal returns to be made, said chief executive officer Datuk Azlan Zainol.
The EPF said investments in the equity market were mainly focused on three segments: 42.8% in the trade and services sector, 23.9% in financial services and 11.8% in industrial products.
Its investment in equities amounted to RM53.9bil, or 19.8% of its total investment portfolio.
The EPF said compared with the first quarter, income from loans and bonds increased by 13.8% to RM1.4bil, while money market instruments showed an improvement of 22.9% to RM182mil.
Income from Malaysian Government Securities (MGS) remained steady at RM1.3bil for the period, and income from properties was constant at RM11mil, it said.
The EPF allocated RM100.2bil of its assets for investment in MGS, RM98.2bil in loans and bonds, RM18.2bil in money market instruments and RM1.7bil in property.
Its investment strategy indicated that 73% of the fund amounting to RM200bil continued to be invested in MGS and loans and bonds with AAA and AA ratings.
Azlan said the EPFs investments in MGS were locked in different maturity tenures, with 53% with a maturity of one to five years, 27.8% with maturity of six to 10 years, and 19.2% with maturity of 11 to 20 years.
The EPF will continue to seek to diversify its portfolio like investing in government-backed private financing initiatives, he added. Bernama