PETALING JAYA: The Employees Provident Fund (EPF) saw a 7.64% increase in total investment income to RM12.39 billion for the second quarter ended June 30, 2018 against RM11.51 billion in the previous corresponding period.
In a statement released today, the pension fund's deputy CEO (Investment) Datuk Mohamad Nasir Ab Latif said the trading environment in the domestic market was less favourable due to capital outflows from emerging markets, including Malaysia as a result of the escalating US-China trade tensions and the US interest rate hike.
As Asean was one of the worst performer, he said Malaysia was not excluded from the market downturn, but the diversification into different markets and sectors has enabled the EPF to record consistent performance with equities emerging as the main contributor during the second quarter.
For the quarter under review, equities, which made up 40.61% of the EPF's total investment assets, contributed RM7.98 billion, representing 64.44% of total investment income.
A total of 52.09% of EPF's investment assets were in fixed income instruments, which continue to provide consistent and stable income. Fixed income investments recorded an income of RM4.09 billion, equivalent to 33.07% of the quarterly investment income.
Income from Malaysian government securities (MGS) & equivalent in Q2 2018 increased to RM2.40 billion. Loans and bonds generated an investment income of RM1.70 billion.
Investments in money market instruments, which represent 2.53% of the total investment assets, contributed RM215.44 million to the investment income.
During the quarter under review, real estate & infrastructure recorded RM91.73 million in investment income. EPF said this asset class continues to provide it with an inflation hedged return with more income expected to come in the later part of the year.