Kuala Lumpur: The Employees Provident Fund’s (EPF) investment assets reached RM1.25 trillion as of December 31, 2024, with 63% of these investments allocated to the domestic market. EPF chairman Tan Sri Mohd Zuki Ali highlighted that domestic investments generated RM37.02 billion, accounting for 49.7% of the total investment income, thereby providing stability to the EPF’s overall investment income.
According to BERNAMA News Agency, global assets contributed RM37.44 billion, or 50.3% of the total investment income. For the year ending December 31, 2024, the EPF recorded a total investment income of RM74.46 billion. Of this, RM63.59 billion was generated for Simpanan Konvensional, and RM10.87 billion was for Simpanan Shariah. Starting January 2024, the EPF fully separated its Simpanan Konvensional and Simpanan Shariah portfolios, allowing each to optimize returns over the long term through an independent strategic asset allocation.
The separation enhances diversification, ensuring that assets under both Simpanan Shariah and Simpanan Konvensional are well distributed across asset classes, geographies, markets, and industries for sustainable returns. The equities asset class contributed RM49.79 billion after net write-downs, accounting for 67% of the EPF’s total investment income with a return on investment (ROI) of 9.90%. The increase in income, surpassing the RM39.01 billion recorded in 2023, was attributed to the strategic and agile approach of fund managers in capitalizing on market gains during periods of volatility, along with robust performance in equity markets.
In 2024, write-downs for listed equities amounted to RM0.72 billion. Private equity investments, which form nearly 10% of the equity investments, generated an ROI of 11.33%. Meanwhile, the EPF noted that fixed income instruments continued to be the foundation for maintaining steady returns and mitigating the impact of short-term market volatility. The asset class, mainly comprising Malaysian Government Securities, contributed RM21.91 billion, or 29% of the EPF’s total investment income for 2024, yielding an ROI of 4.27%.
The higher income recorded compared to RM19.74 billion in 2023 aligns with the growing asset size. Real estate and infrastructure registered an income of RM1.64 billion, with an ROI of 5.13% on a constant currency basis. Income from money market instruments was RM1.12 billion, delivering an ROI of 1.89%. As many of these investments are denominated in non-ringgit currencies, overall performance was affected by foreign exchange translation as the ringgit strengthened against the US dollar.
EPF stated that fixed income instruments make up 46.2% of investment assets, while equities comprise 43.5%. Real estate and infrastructure, along with money market instruments, account for 6.3% and 4% of EPF assets, respectively.