Malaysia's 2nd largest pension fund may cut 5% minimum return target

Wan Kamaruzaman: ‘If the fund’s assets reach 70, then we will probably look at turning the whole of KWAP into a full-fledged Islamic fund.’

KUALA LUMPUR: Malaysia’s second-largest pension fund plans to buy more bonds with maturities of 10 years and above to hedge against another interest-rate cut as it moves further toward becoming a full-fledged Islamic entity.

Retirement Fund Inc (KWAP), which manages about RM120bil, is considering lowering its 5% minimum return target because of the uncertainty in global markets, said chief executive officer Wan Kamaruzaman Wan Ahmad.