SHAH ALAM:The Employees' Provident Fund (EPF) recorded a total investment income of RM74.46bil for 2024, which is a 11% jump from the RM66.99bil reported in the previous year.
Driven by portfolio income and net contributions of RM108.22bil, the pension fund’s investment assets grew 10% to RM1.249 trillion from RM1.135 trillion in 2023.
As at December 2024, 63% of EPF’s investment assets were invested domestically.
Domestic investments generated 49.7% of total investment income, at RM37.02bil — thus providing stability to the overall total investment income.
Meanwhile, RM37.44bil or 50.3%, of the total investment income recorded came from global assets.
A total of RM63.59bil out of the RM74.46bil total investment income was generated for conventional savings, while RM10.87bil were for Syariah savings.
As for asset classes, equities contributed RM49.79bil after netting off write downs. This asset class accounted for 67% of the EPF’s total investment income, generating a return on investment (ROI) of 9.90%.
The EPF attributed the rise in income for this asset class, which surpassed the RM39.01bil recorded in 2023, to the strategic and agile approach in capitalising on gains during periods of market volatility, coupled with robust performance across equity markets.
In 2024, write downs for listed equities amounted to RM0.72billion.
Private Equity investments, which represented close to 10% of the equity investments, generated an ROI of 11.33%.
Fixed Income instruments continued to maintain steady returns and mitigated the impact of short-term market volatility.
This asset class, comprised predominantly of Malaysian Government Securities, contributed RM21.91bil, or 29% of the EPF’s total investment income for 2024, generating an ROI of 4.27%. The higher income recorded compared to 2023's figure of RM19.74bil was also in line with the growing asset size.
Real Estate and Infrastructure registered an income of RM1.64bil, recording an ROI of 5.13% on a constant currency basis.
Income from Money Market instruments was RM1.12bil, delivering an ROI of 1.89%. As a majority of these investments are denominated in non-ringgit currencies, overall performance was impacted by foreign exchange translation during the year as the Ringgit strengthened against the US Dollar.
Fixed Income instruments made up for 46.2% of investment assets, followed by Equities comprising 43.5%. Real Estate and Infrastructure as well as Money Market instruments made up for 6.3% and 4% of EPF assets, respectively.
EPF chairman Tan Sri Mohd Zuki Ali said, in a statement Saturday (March 1), that the fund’s diversified investment strategy allowed it to capitalise on growth opportunities, optimise returns, and reinforce the long-term financial security of its members.
“Domestically, strong investments, a healthy labour market, and stable inflation boosted demand, while exports benefited from global stability and the tech upcycle. Under the leadership of Prime Minister Datuk Seri Anwar Ibrahim, government initiatives under Budget 2024 and strategic plans under the Madani Economy framework have attracted foreign investments, creating a supportive environment for economic growth,” he added.
Mohd Zuki said market volatility experienced in 2024 underscored the importance of the EPF’s Strategic Asset Allocation (SAA) in navigating challenging economic conditions.
“The SAA has been pivotal in maintaining steady portfolio performance, ensuring the long-term resilience of the EPF’s investment portfolio.
"By balancing risk and return, this approach not only safeguards the fund against market uncertainties but also supports sustainable dividend payouts for our members,” he said.
The Employees Provident Fund (EPF) has declared a dividend rate of 6.3% for conventional savings for 2024, with the total payout amounting to RM63.05bil.
Meanwhile, the dividend rate for syariah savings was 6.3% with the payout totaling to RM10.19bil.
“Alhamdulillah, the EPF is pleased to announce higher dividends for 2024, driven by recovering global and domestic markets, resilient economic growth, and sound portfolio management.
"Our diversified investment strategy allowed us to capitalise on growth opportunities, optimise returns, and reinforce the long-term financial security of our members,” Mohd Zuki said.
