Malaysia's Employees Provident Fund reported assets under management of 957.3 billion ringgit ($206.4 billion) at the June 30 close of its second quarter, down 6.2% from the prior quarter against a global backdrop of spiking inflation, rising interest rates and worsening geopolitical tensions.
The latest figure reflects pandemic-related withdrawals of 44.6 billion ringgit during the quarter, nearly offset by contributions of 43.23 billion, according to an EPF news release.
"Expectations of global growth have suffered," causing a persistent sell-off in global markets, said CEO Amir Hamzah Azizan in the news release.
Malaysia's benchmark stock index, meanwhile, dropped roughly 9% over the quarter while the dollar appreciated against the ringgit by roughly 4.8%.
But Mr. Hamzah said the EPF's diversification efforts helped steady the fund's portfolio at a time of "turbulent market conditions."
For example, the EPF's private equity exposures, part of the fund's 43% allocation to equities, delivered "healthy returns" of 1.15 billion ringgit in the latest quarter, roughly double their contributions for the year-earlier quarter.
The fund's holdings of real estate and infrastructure assets, meanwhile, with 7% of total portfolio assets, registered income of 1.2 billion ringgit.
The portfolio as a whole delivered 11.14 billion ringgit in gross investment income.
The fund's overseas investments came to 36% of the EPF portfolio as of June 30, down from 37% at the close of the prior quarter.
