KUALA LUMPUR (May 19): The Employees Provident Fund (EPF) said its investment income in the first quarter surged over 50% from a year earlier, after the pension fund took profits early ahead of expected market volatility.
Investment income for the three months ended March 31, 2026 (1QFY2026) rose 51% year-on-year (y-o-y) to RM27.73 billion, representing “a strong first-quarter income that reflects a portfolio decision taken at the beginning of this year to realise gains ahead of anticipated market turbulence”, EPF CEO Ahmad Zulqarnain Onn said in a statement on Tuesday.
He cautioned EPF members against expectations of similar record-high profits in the coming quarters.
“Our portfolio managers front-loaded income that would otherwise have been spread across the full year. Members should not extrapolate this quarter’s result, as it is unlikely to be repeated in subsequent quarters. The underlying portfolio continues to be managed for sustainable, long-term returns and not short-term peaks,” he said in the statement.
By portfolio, Simpanan Konvensional’s total investment income stood at RM22.63 billion, while Simpanan Shariah was at RM5.1 billion.
“The environment ahead remains challenging. Elevated geopolitical risk, rising oil prices and renewed inflationary pressures create real headwinds for global markets. We entered this period of uncertainty in a position of strength because we acted early,” Ahmad Zulqarnain said.
“Our priority now is capital preservation and disciplined deployment to ensure the adequacy and sustainability of retirement savings for our 18 million members over the long term,” he added.
Income from equities, making up 45.1% of the fund’s total investment assets, rose 88% y-o-y to RM20.34 billion, while fixed-income instruments, comprising 46.1% of assets, contributed RM6.76 billion.
The remainder, real estate and infrastructure as well as money market instruments, generated RM190 million and RM440 million respectively.
Geographically, the fund’s international investments, 36% of its RM1.44 billion in total investment assets, accounted for the bulk of income.
International investments generated 55% of total investment income or RM15.36 billion, which the EPF said underscores “the importance of geographical diversification in enhancing returns and managing portfolio risk”.
EPF saw 220,925 new members register in the quarter, bringing total membership to over 18.3 million.
Total contributions, meanwhile, increased 13.3% to RM38.01 billion in 1QFY2026 from RM33.54 billion in the same period a year earlier. Voluntary contributions, the fund noted, continued to gain momentum, rising to RM8.83 billion in the quarter.