This was a 3% rise from the RM14.77 billion recorded in the same period last year, its CEO Amir Hamzah Azizan said today.
He said the shallow recession in developed markets in that period, coupled with rising optimism over China’s reopening, also acted as a catalyst for growth in its investments.
Income from equities was the biggest contributor to EPF’s revenue, accounting for RM8.96 billion or 59% of the total. Equities contributed RM8.75 billion to its revenue in Q1 2022, the pension fund said in a statement today.
Fixed income instruments, which include Malaysian government securities (MGS) and its equivalent, came in with revenue of RM4.97 billion, accounting for 32% of the total, making it the second largest contributor.
Income from other asset classes such as money market instruments and real estate infrastructure amounted to RM490 million and RM920 million respectively.
EPF said MGS and government investment issues (GII) rallied during the quarter as overall benchmark yields declined with easing inflationary expectations in the US, enabling the retirement fund to capitalise on trading gains.
Its overall investment assets as at March 2023 grew to RM1.04 trillion, and overseas investments accounted for 37% of the total assets.
EPF said its overseas investments, which were mainly in equities, “continued to outperform and add value” to its overall returns.
Collectively, they generated RM7.04 billion in income, representing 46% of the total investment income recorded.
EPF said its domestic investments, which account for 63% of total assets that are mainly invested in fixed income instruments, continued to provide long-term income stability through interests and profits.
It pledged to remain steadfast in supporting the home economy by continuing to set aside more than 70% of its new annual investment allocation to the domestic market.
The fund’s write-downs in Q1 were minimal at RM440 million compared with the RM1.09 billion recorded in the same quarter of 2022.
“Despite the challenges in the first quarter of 2023, EPF managed to sustain its consistency of performance for the quarter,” Amir said.
“While returns have been positive so far this year, financial markets have remained volatile, with geopolitical tensions and high inflation continuing to be key concerns for major markets worldwide,” he said.
Amir said EPF will continue to look out for “resilient and fundamentally sound companies with stable dividend payout” for investment opportunities.