KUALA LUMPUR: Kumpulan Wang Persaraan (KWAP) fund size has increased by 12% or RM8.85bil to RM82.61bil in the first quarter of this year compared to corresponding quarter last year.
KWAP chief executive officer Datuk Azian Mohd Noh said the company’s gross investment income increased to RM1.2bil in the first quarter of this year, which is 6.8% higher than RM1.13bil in the corresponding period in 2011. KWAP achieved a gross return on investment of 1.5%, with net investment income totaling to RM1.61bil.
“The increase was mainly attributed to the strong stock market performance in the first three months of the year. The low interest rate environment also created opportunities for KWAP to intensify the trading activity of its fixed income portfolios translating into higher capital gains,” she said in a statement yesterday.
Equity investment contributed RM501.42mil or 42% from the total investment income. Fixed income assets, namely Malaysian Government securities, loans and private debt securities, and money market instruments contributed RM299.19mil, RM273.29mil and RM119.18mil respectively, while the remainder is contributed by alternative investments.
Ninety-six per cent of KWAP’s fund are invested domestically while the remaining 4% internationally.