KUALA LUMPUR: Kumpulan Wang Persaraan (Diperbadankan) reported gross investment income rose 21.9% to RM4.33bil in the third quarter ended Sept 30, 2012 from RM3.55bil a year ago.
"KWAP's performance for the period translates into a gross return on investment of 5.25%," it said on Friday. After incorporating the provision of allowances for diminution in value and operating expenditure, net income over the same period amounted to RM4.31bil. On the nine-month financial performance, KWAP chief executive officer Datuk Azian Mohd Noh said, new measures were introduced by major central banks to help calm sentiments.
"On the other hand, the Malaysian economy proved to be resilient throughout the period as buoyant domestic demand help compensate for a generally subdued external environment," he said. KWAP's fund size increased by RM11.0bil or 14.5% to RM86.63bil in Q3, 2012 from RM75.63bil a year ago mainly due to the stock market while the increase in trading of domestic equity and government securities contributed a significant portion of capital gain to the overall income. "Investments in equity contributed RM2.19bil or 50.7% of the total investment income. Fixed income assets, namely Malaysian Government Securities, loans and private debt securities, and money market instruments contributed RM745.79mil, RM908.60mil and RM271.66mil respectively, while the remaining balance was contributed by alternative investment," Azian said.