EPF’s Investment Portfolio Performance in 2023
The Equities asset class contributed RM39.05 billion after netting off write downs, accounting for 58% of the EPF’s total investment income with an ROI of 8.68%. The increase in income, higher compared to RM27.12 billion in 2022, was mainly attributed to higher capital gains following better market conditions. Listed equity write downs for 2023 were minimal at RM0.40 billion, compared to the RM3.43 billion recorded in 2022. Private Equity investments generated an ROI of 9.69%.
Fixed Income instruments, predominantly Malaysian Government Securities, continued to be the anchor for the portfolio in maintaining steady returns. The asset class contributed RM19.74 billion, or 30% of the EPF’s total investment income, yielding an ROI of 4.41%. The higher income recorded compared to 2022 of RM18.15 billion is in line with the growing asset size and is mainly contributed by interest and profit income from bonds and sukuk, respectively.
Real Estate and Infrastructure registered an income of RM6.03 billion, 8% or RM0.43 billion higher compared to 2022 income of RM5.60 billion, recording an ROI of 5.04%. Income from Money Market instruments was RM2.17 billion, more than double the income generated in 2022, owing to higher money market balances and foreign currency translation, delivering an ROI of 4.93%.
Fixed Income instruments made up 46% of investment assets, while Equities comprised 42%. Real Estate and Infrastructure as well as Money Market instruments made up 7% and 5% of EPF assets, respectively.
As at December 2023, the EPF’s investment assets stood at RM1,135.82 billion, of which 62% was invested domestically. Domestic investments generated RM31.71 billion, or 47% of total investment income, which provided stability to the overall EPF’s total investment income. Global assets generated income of RM35.28 billion, or 53%, of the total investment income recorded.
A total of RM58.97 billion out of the RM66.99 billion total investment income was generated for Simpanan Konvensional, and RM8.02 billion for Simpanan Shariah. Simpanan Shariah derives its income solely from its portion of the Shariah portfolio while income for Simpanan Konvensional is generated by both the Shariah and Conventional portfolios.
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