Kumpulan Wang Persaraan (KWAP) will review its asset allocation strategy in the new year, it's chief executive Datuk Wan Kamaruzaman Wan Ahmad(pic) said at Reuters Global Investment 2018 Outlook Summit. Its current international investments include US ride-hailing firm Uber Technologies Inc, he said.
KUALA LUMPUR: Retirement Fund Inc (KWAP) registered a gross income of RM9.03bil last year, the highest since its inception in 2007.
On a year-on-year basis, the gross income grew by 41.98%.
Total fund size increased to RM140.8bil from RM125bil, while overall gross return on investment (ROI) advanced to 5.77%, outperforming 2016’s ROI by 0.42%.
Throughout the decade, the pension fund has been able to sustain an annual average gross ROI of 6.14%.
In terms of Time Weighted Rate of Return (TWWR), KWAP recorded an achievement of 9.09% in 2017.
Speaking at a media briefing today, KWAP CEO Datuk Wan Kamaruzaman Wan Ahmad said the outstanding performance did not come without any challenges, especially in the low yield and high volatility environment of recent years.
“Achieving sustainable asset growth is of utmost importance to us, as it enables KWAP to effectively manage our investments more diligently.
“We attribute this to the health of our portfolio, sound investment strategy, and robust risk framework,” he said.
KWAP is targeting to achieve assets under management (AUM) of RM150bil this year.
As of end-2017, AUM stood at RM140.8bil.
Wan Kamaruzaman added that KWAP will be reviewing its Strategic Asset Allocation (SAA) soon, and looks to increase the asset allocation in the alternative investment and listed equity space.
KWAP’s asset allocation currently stands at 46% fixed income, 40% equity, and 14% alternative investments.
(The alternative investments comprise property at 10%, private equity at 3%, and infrastructure at 1%.)
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