In Shah Alam, the Employees Provident Fund (EPF) has reported a total investment income of RM66.99bil for the financial year ended Dec 31, 2023. This figure represents a 29% increase from the RM51.91bil recorded in 2022. The total investment income was reported after accounting for equity write-downs. A significant portion of the income, RM5.72bil, was generated from mark-to-market gains of securities that have not been realized and will not be part of the dividend distribution.
The EPF’s investment assets have seen strong growth, reaching RM1,135.82bil in 2023, a 13% increase from RM1,002.67bil in 2022. This growth was driven by income from the portfolio and an increase in contributions, with RM97.56bil contributed in 2023, a 15% increase from the previous year.
Approximately 62% of the investment assets were invested domestically, generating RM31.71bil or 47% of the total investment income. Global assets, on the other hand, generated RM35.28bil or 53% of the total investment income.
When it comes to asset classes, Equities accounted for 58% of the total investment income with a return on investment (ROI) of 8.68%. Fixed Income instruments made up 46% of investment assets, contributing RM19.74bil. Real Estate and Infrastructure, as well as Money Market instruments, accounted for 7% and 5% of EPF assets respectively.
Fixed Income instruments, predominantly in the form of Malaysian government securities, yielded an ROI of 4.41% and contributed RM19.74bil to the total investment income. Real Estate and Infrastructure recorded an income of RM6.03bil with a ROI of 5.04%, while Money Market instruments generated RM2.17bil with an ROI of 4.93%.
By the end of 2023, the EPF’s Asset Under Management (AUM) stood at RM702.48bil, up from RM643.38bil in 2022. More than 80% of the investment allocation for 2023 was deployed into the domestic market, providing capital to Malaysian companies and the economy.
The EPF holds about 28% of outstanding Malaysian Government Securities (MGS) and Government Investment Issues (GII) issuances, as well as about 12% of the FTSE Bursa Malaysia Top 100 Index market capitalization as of December 2023.
Total contributions to the EPF increased by 15% in 2023 to RM97.56bil, reflecting improvements in members’ financial capacity due to the progressive recovery of incomes, employment, and the economy. The number of registered employers with the EPF reached 606,187 by the end of 2023.
EPF chairman Tan Sri Ahmad Badri Mohd Zahir commented on the performance of 2023, highlighting the importance of the fund’s robust investment strategy and prudent risk management in navigating market volatility. He credited the EPF’s Strategic Asset Allocation (SAA) and active portfolio management for achieving the results.
Looking ahead to 2024, Ahmad Badri expressed confidence in EPF’s resilient investment approach and focus on long-term value creation. Despite global market challenges, he believes the EPF’s commitment to strong performance and member benefits will continue.
