PETALING JAYA: Timely and strategic capitalisation on profits has helped the Employees Provident Fund (EPF) turn in a RM33.19 billion investment income in the six months to June 30, 2023 (H1 2023).
This was up RM9.44 billion or 39.75% from RM23.75 billion recorded in the same period last year.
In a statement issued today, the pension fund said the amount was arrived at after netting off listed equity writedowns recorded for the period under review.
The total investment income for the second quarter (Q2 2023) amounted to RM18.03 billion.
This was a significant increase of RM9.05 billion compared with the RM8.98 billion reported for the corresponding quarter in the previous year.
Of the overall RM33.19 billion investment income, RM4.79 billion originated from unrealised mark-to-market (MTM) gains in securities, primarily driven by fluctuations in foreign exchange rates.
Furthermore, revenue from equity investments remained the primary driver, contributing RM9.60 billion to the overall income in Q2 2023.
In contrast, during Q1 2022, the asset category yielded income amounting to RM4.07 billion.
The EPF said a significant portion of the improvement stemmed from the timely and strategic capitalisation on profits, supported by MTM gains in securities.
After accounting for write-offs, there was a 53% contribution to the overall investment earnings in the quarter.
CEO Amir Hamzah Azizan said in H1 2023, the global stock markets demonstrated a favourable performance, driven by better performance in developed markets.
The US market, especially, exhibited remarkable resilience even in the face of increasing interest rates, he said.
“Besides that, the worldwide equities markets showcased positive results, propelled by a notable upswing in developed markets in H1 2023.
“Notably, the US market showcased impressive adaptability in the midst of escalating interest rates,” he added.
For Malaysia, Amir said, the 5.6% GDP growth in the first quarter of 2023 had surpassed expectations, driven mainly by firm domestic demand and improvement in the labour market.
“Resilient growth tempered the tighter financial conditions, providing a floor for the domestic capital markets,” the CEO added.
