Income from equities accounted for two-thirds of its RM31.2 billion ($9.44 billion) payout, and mitigated a drop in contribution from fixed income instruments.
"By having a diversified portfolio across many markets, we are able to take opportunities when they arise and reduce the overall risk to the fund," chairman Samsudin Osman said in a statement.
The EPF, a key investor in Malaysia's market for Islamic bonds, saw contributions from its fixed income portfolio drop 22% to RM7.53 billion because of the absence of some one-off transactions, it said.
Lower interest rates globally and the reinvestment of maturing bonds at lower rates also had a negative impact, said the EPF.
A higher proportion of offshore investments paid off for the fund. Its overseas exposure rose to 20.9% of assets from 15.7% in 2012. "To secure a stable long-term yield and manage risks, we continue to expand our reach overseas and broaden our outsourced asset management," it said. – Reuters, February 17, 2014.