Transformation Journey

In May 2008, KWAP underwent a review and enhancement of its existing business model and capabilities to enable it to fulfill its vision of becoming a high performing fund assuring sustainable pension benefits.

KWAP Strategic Pillars

The exercise recommended KWAP to adopt a returns-based asset manager model which requires the organisation to focus on growing its fund size in order to meet Government’s pension liability. To achieve this, KWAP has established four strategic pillars as illustrated :

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Enhanced Returns
  • In order to enhance KWAP’s risk-adjusted returns, KWAP shall diversify its investments into new asset classes including foreign asset classes. This will be achieved through reviewing its existing Strategic Asset Allocation (“SAA”) and migrating towards a new SAA which would give enhanced returns within the permissible risk parameters.​
Risk Awareness

  • Risk management is not only limited to setting up a risk management function within the organisation but is fundamentally about inculcating risk management practices in every aspect of the organisation’s activities cutting across the entire organisation. Taking cognisance of the above and reinforced further by potential investment complexity which KWAP may face in the future, creating risk culture has been chosen as one of KWAP’s strategic pillars.​

Performance Culture

  • Having the right investment and risk management tools will not guarantee the success of the organisation unless there is an alignment between the organisation and employees’ goals. To achieve this, it is imperative for KWAP to create a working environment characterised by clear accountabilities, Key Performance Indicators (“KPIs”) and an appropriate performance-linked reward scheme.​

Talent Organisation

  • Recognising human resource as KWAP’s most important asset or enabler in achieving its goals, effective talent management has been set as another strategic pillar.This necessitates KWAP to look at how it should optimally grow its internal talent whilst attracting new talent, underscored by the organisation’s demand for specific technical skills and expertise as well as overall leadership to bring the organisation to the next level.