KUALA LUMPUR: The Employees Provident Fund (EPF) has recorded a gross investment income of RM17.33bil for the third quarter this year.
This is an increase of 14.6% from the RM15.12bil recorded in the second quarter.
EPF chief executive officer Tunku Alizakri Alias said the year had seen great volatility in the financial markets which saw very rapid movements from one extreme to the other.
“Our financial positions over the first three quarters have been affected by the volatility in market sentiments exacerbated by the uncertainties of the Covid-19 pandemic and continued fragile consumer sentiments, ” he said in a statement.
EPF said equities contributed RM7.29bil to its total gross investment income while fixed income instruments contributed RM8.18bil.
Real estate and infrastructure, and money market instruments contributed RM1.63bil and RM230mil.
After accounting for impairment and cost write-down for listed equities, its net investment income came up to RM16.87bil.
EPF said while the global equity indices that the EPF tracked closely have rebounded from the lowest in March, many had yet to recover to pre-pandemic levels seen at the end of 2019.
“Even as economies around the world struggle to recover from widespread lockdowns, infections are rising again, which will be a serious impediment to any global economic recovery to pre-pandemic levels.
“We expect interest rates to remain lower for longer as central banks continue to ease monetary policies to support their respective economies, ” Alizakri said.
He said for Malaysia as a trade-dependent country, the continued uncertainties surrounding the global economic recovery would have an impact on external demand which might affect the job landscape and curb domestic economic activities.
“Throughout this very challenging year, we remain steadfast in our commitment to help our members achieve a better future and also safeguard their long term retirement savings by preserving capital and safely riding through this volatile period.
“This will be achieved by ensuring profits generated from our investments are done in a healthy and sustainable manner, with prudent write-down and impairment measures to be proactively practiced at all times, ” he said.