EPF 2017 Q1 Performance

EPF 2017 Q1 performance review: investment assets grew to RM747.2 billion in 2017 Q1 and income grew 73.9%.

Updated: June 2, 2017

 

EPF 2017 Q1 Performance

Key Summary

  • Income Year-on-Year (YoY) increase 6.78b to 11.79b (+73.9%)
  • Income Quarter-on-Quarter (QoQ) increase 10.91b to 11.79b (+9.6%)
  • Assets Under Management (AUM) YoY increase 681.7 to 747.2 (+8.3%)
  • AUM QoQ increase 731.1 to 747.2 (+2.2%)

 

“Both the domestic and global markets improved significantly compared with the first quarter last year. The FBM KLCI grew by six (6) per cent, driven by the growth in the banking sector, while global indices improved by as much as 12 per cent, a striking difference from the market environment last year. The positive market condition was conducive for profit taking activities leading to higher gross investment income in Q1 2017 and also lower net impairment.”
– CEO Datuk Shahril Ridza Ridzuan

 

Key Drivers

  • Improvement in domestic equity market.
  • Recovery in banking sectors.
  • Continued opportunities in global market.

 

Key Concerns

  • US healthcare bill, trade agreements, and interest rate hikes.
  • Volatility in European countries.
  • Negotiations and political changes surrounding Brexit.

 

EPF 2017 Q1 Returns

Returns 2017 Q1 2017 Q1 % 2017 Projection
EPF (Conventional) 10.84 1.58% 6.30%
EPF-i (Simpanan Shariah) 0.95 1.60% 6.41%

Note: Based on gross income and Simpanan Shariah take-up as of Dec 2016 with 2017 full year projection based on 2017 Q1 performance

 

Type Value % EPF Income EPF-i Income Total Income
Equities 312.0 41.8% 6,593.0 504.3 7,097.3
Fixed Income 366.7 49.1% 3,656.1 418.5 4,074.6
Money Market Instruments 37.7 5.0% 351.3 21.5 372.8
Real Estates & Infrastructure 30.7 4.1% 238.5 7.8 246.3

 

EPF 2017 Q1 Investment Allocation

EPF Investment Allocation

 

EPF Malaysia VS Overseas Investment

 

EPF Shariah VS Non-Shariah Compliant Investments

 

EPF Conventional VS Simpanan Shariah

 

Performance of both Simpanan Shariah and Simpanan Konvensional would depend on market performance, thus making short-term differences between the two inevitable. In the long run, the performance of the two should be similar following similar strategies implemented for both accounts. 
CEO Datuk Shahril Ridza Ridzuan

 

EPF 2017 Q1 Review

  • EPF has done a good job in the first quarter riding the banking sector recovery and capturing equity market gains both in Malaysia and overseas.
  • EPF’s growing AUM required income of RM650.5m for every 0.1% dividend returns in 2016. For 2017, estimated EPF will require RM714.7m for every 0.1% dividend returns.
  • Based on 2017 Q1 performance: 11,792.46m income = est. 1.65% dividend returns
  • The inevitable comparison between EPF Conventional and Simpanan Shariah will persist although EPF states that over the longer term the returns should be similar. It is yet to be seen if there is a clear better option.
  • EPF Simpanan Shariah uptake is still below EPF’s goal of RM100b fund allocation and will need to increase from current 8% to 13% of overall EPF funds.

 

More Info

 

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