KWAP pursues overseas investments
Malaysia’s Kumpulan Wang Persaraan (Diperbadankan), or KWAP for short, recently won government approval to increase its international strategic asset allocation (SAA) to 19 percent of its portfolio from 10 percent, according to an announcement by Second Finance Minister Ahmad Husni Mohamad Hanadzlah. In an effort to increase diversification, the SAA allows KWAP to invest overseas in equity, fixed income, property and private equity asset classes.
According to KWAP’s 2012 annual report, the defined benefit pension fund had utilised 6.58 percent of the SAA with international exposure at a market value of RM 1.69 billion (US$529 million) for fixed income, RM 2.04 billion (US$639 million) for equity, RM 1.99 billion (US$623 million) for property and RM 238.18 million (US$75 million) in private equity as at 31 December 2012.
As for property, KWAP