This amounts to a 73.9% jump over the investment income of RM6.78 billion over the same period a year ago.

The value of EPF investment assets now totals RM747.17 billion up 2.2% or RM16.06 billion from Dec 31, 2016. Of the total, RM352.7 billion or 47.2% is now shariah-compliant investments.

EPF chief executive officer Shahril Ridza Ridzuan said in a statement yesterday the FBM KLCI grew by 6%, driven by the growth in the banking sector, while global indices improved by as much as 12%.

“The positive market condition was conducive for profit-taking activities leading to higher gross investment income in 1Q[FY17] and also lower net impairment.”

The Edge quoted him as saying net impairments fell 52.7% to RM775.92 million in the quarter compared with RM1.6 billion a year ago, following improvements in major markets.

Despite the improvement, however, Shahril said: “While we have had an encouraging first quarter, we remain cautious moving forward as recovery in commodity prices remains weak with continued currency volatility.”

Equity, which makes up 41.7% of the EPF’s total investment assets, rose 178.6% to contribute RM7.1 billion or 60.2% of its 1QFY17 total investment income, from RM2.55 billion a year ago, The Edge reported.

The EPF said recovery in the banking sector resulted in a 30% contribution to the trading and dividend income of the portfolio in 1QFY17.

The EPF’s overseas investment, accounting for 29% of its total investment asset,contributed 37% to the total investment income recorded in Q1, 2017.

As at March 2017, EPF had invested 49.08% in fixed-income instruments that recorded an income of RM4.07 billion, equivalent to 34.6% of its quarterly investment income.

Income from Malaysian government securities and equivalent in the first quarter of 2017 increased by 3.67%, or RM68.56 million, to RM1.94 billion from RM1.87 billion the previous year.