The amount was after netting off listed equity write downs recorded for the period, the retirement fund said in a statement today.

For the third quarter ended Sept 30, 2023 (Q3 2023), total investment income amounted to RM14.67 billion after netting of write-downs, increasing 19% y-o-y from RM12.29 billion.

“Out of the RM47.86 billion total investment income, RM4.62 billion were generated from mark-to-market (MTM) gains of securities that have not been realised. The MTM gains were mainly due to the fluctuation of foreign exchange rates,” EPF said.

CEO Amir Hamzah Azizan said that global equities posted a negative return in Q3 2023, a sharp contrast from the strong gains experienced in the first half of the year.

“The Gaza-Israel war and the ongoing Russia-Ukraine conflict will undoubtedly contribute to an atmosphere of uncertainty and market volatility.

Amir anticipated that the current geopolitical risks will continue to amplify the already turbulent situation.

He anticipates that market sentiments will continue to be impacted by multiple factors – such as concerns about China’s economy, rising energy prices and increasing government bond yields – amid the higher-for-longer interest rate environment.

“Notably, August marked a significant event when Fitch Ratings downgraded the US’s AAA rating to AA+. This action was prompted by its growing debt burden, underscoring the challenges faced by the global economic landscape,” he said.

“These developments have introduced a new dimension to the global economic landscape, one that requires EPF to implement a vigilant and adaptive approach as we navigate the financial market,” he said.