The Employees Provident Fund's (EPF) investment income jumped 73.9 per cent to RM11.79 billion in the first quarter ended March 31, 2017 (1Q17) from RM6.78 billion in the same quarter last year.

Chief Executive Officer Datuk Shahril Ridza Ridzuan said the bullish performance was boosted by the significantly improved domestic and global markets in the quarter under review.

The value of EPF investment assets increased 2.2 per cent to RM747.17 billion from Dec 31, 2016, involving Shariah-compliant investment worth RM352.73 billion, while the balance were conventional assets, he said in a statement today.

Of the total investment assets, equities made up 41.76 per cent with RM7.10 billion contribution, representing 60.2 per cent of total investment income for the quarter. This was 178.6 per cent higher from the RM2.55 billion recorded in the corresponding quarter last year.

The recovery in the banking sector contributed to about 30 per cent of the trading and dividend income for the portfolio during the quarter.

In addition to improvement in the domestic equity market, he said the global market also continued to provide opportunities for the EPF to realise its gains despite volatilities arising from the elections in eurozone countries, US President Donald Trump's healthcare bill, the US interest rate hike and negotiations surrounding Brexit.

"These market moving factors were alleviated by the positive economic numbers, including the revised growth forecast for major economies," he said.

Shahril Ridza said EPF's overseas investment accounted for 29 per cent of its total investment asset and contributed 37 per cent to the total investment income in 1Q17.

Income from Malaysian Government Securities and equivalent contributed about RM1.94 billion to the total income; loans and bonds (RM2.14 billion); money market instruments (RM372.79 million); while real estates and infrastructure (RM246.27 million).

Following the commencement of Simpanan Shariah on Jan 1 this year, RM952.10 million out of the total gross investment income worth RM11.79 billion was generated for Simpanan Shariah, while RM10.84 billion for Simpanan Konvensional.

-- BERNAMA