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: Kumpulan Wang Persaraan (Diperbadankan) (KWAP) outsourced RM17.50bil to both domestic and international external fund managers (EFMs) as at end-December 2017.
The pension fund said this was an increase of 19.60% compared to RM14.60bil outsourced in 2016, as these EFMs provided a broader range of innovative capabilities and opportunities.
The allocation, invested in both equity and fixed income instruments, was about 12.42% of KWAP’s total investment assets of RM140.80bil, according to its statement issued on Thursday.
Commenting on the performances of the both external and international fund managers, KWAP pointed out domestic portfolio managers registered a compounded annual growth rate (CAGR) of 18.10% in the last 10 years since the fund’s inception.
As for the international EFMs, they achieved a CAGR of 26.60% annually from 2011 to 2017.
Chairman of KWAP’s investment panel, Datuk Mohammed Azlan Hashim said: “Leveraging on EFMs had provided KWAP with a broader range of innovative capabilities and opportunities.”
He was delivering his keynote address at KWAP's inaugural 2018 External Fund Manager (EFMs) awards winners held recently.
The awards acknowledged fund managers who have secured long-term risk-adjusted returns and have been responsible stewards of sustainable investment.
Mohammed Azlan added that it was timely for KWAP to recognize the EFMs this year as KWAP has reached a stage where there was reasonable record of accomplishments to assess the success and sustainability of the funds.
He also said as KWAP progresses, it would continue to support the fund management industry by allocating strategic key mandates to increase returns.
“The EFMs can expect KWAP to continue to enhance the mandate, while improvising our policies to incentivise performing EFMs as part of our diversification investment strategies”, he said.
To recognise outstanding fund managers, KWAP selected winners from 12 different categories: seven for its equity mandate and the remaining five for its fixed income mandate.
Each fund manager was evaluated and selected through a meticulous scoring process that measures performance based on key quantitative and qualitative metrics.
KWAP chief executive officer Datuk Wan Kamaruzaman Wan Ahmad said: “Recognition given to industry players oftentimes works as a catalyst for progress.
“And this is what we aim to do with this inaugural KWAP EFM Awards. In addition to awards and recognition, I believe we should also help one another by sharing our experience and wisdom amongst industry players”.
The 2018 KWAP External Fund Managers Awards categories include Domestic Conventional Equity, Domestic Shariah Equity, Domestic ESG Equity, Domestic SmallCap Equity, and International Equity for the equity mandate, as well as Domestic Fixed Income, Domestic Sukuk, and International Fixed Income for the fixed income mandate.
KWAP also presented the Best EFM Award for the three-year TWRR (Time Weighted Rate of Return) category for the Equity and Fixed Income mandates respectively.
Equity
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