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You
are here:
 Investments > Alternative Investment
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"KWAP achieved net ROI and TWRR of
5.75% and 5.30%
respectively in 2011"
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| Alternative Investment (ALTID)
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| About ALTID |
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| The objective
of ALTID is to plan, implement, monitor and report on the
alternative investment
activities of KWAP. |
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| Principal Activities |
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- Develop action plan to invest KWAP’s fund in private
equities and properties both domestically and internationally via approved
private equity funds and direct private equity.
- Implement investment activities as approved by the Investment
Panel and the Board.
- Monitor investment activities and evaluate performance
of the private equity funds, direct private equity and
investment in properties periodically,
including attending meetings with fund managers and committees
established for the purpose.
- Report periodically investment activities and
performance of private equity funds, direct private
equity
and properties to the Investment
Panel and the Board.
- Develop, maintain and revise appropriate Standard Operating
Procedures for the operations of ALTID.
- Strive to meet targeted income for the year on investments
under the purview of ALTID.
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| List of Investments |
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| Private Equity |
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- IDB Infrastructure Fund LP
- CIMB-Mapletree Real Estate Fund 1
- Actis ASEAN Fund LP
- Lombard Asia III
- Templeton Strategic Emerging Markets Fund III
- CIMB Trust Capital Australian Office Fund No. 1 LP
- Tata Capital Growth Fund LP
- Ancora Fund II LP
- Asia Water Fund LP
- Saratoga Asia II LP
- Advent VI Fund
- Dragon
Rider Opportunity Fund II
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| Unlisted Entities |
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- Valuecap Sdn Bhd
- Malakoff Corporation Bhd
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| Properties |
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- An office building known as 737, Bourke Street in
Melbourne, Australia
- An office building known as ASX Building in
Sydney, Australia
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| Selection Criteria for
Respective Asset Classes under ALTID |
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I. Private Equity Funds
II. Direct Private Equity
III. Properties |
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| I. Private Equity
Funds |
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1. Organisation and Staff |
- Quality and experience of key personnel;
- Dedicate sufficient time and effort to proposed fund;
- Quality and experience of the General Partner (GP) of
the fund;
- Integrity of GP, staff & other related parties;
- Value-added involvement of GPs in the fund; and
- Relationship with relevant contacts within the investment
community.
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2. Investment Philosophy and Process |
- Clearly defined policies and transparent process;
- Reasonable capital committed by GPs;
- Potentials for co-investment; and
- Clear exit strategies.
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3. Risk Management
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- Compliance with requirements of local laws, if any;
- Registered investment advisor/manager within any jurisdiction;
and
- Quality of overall fund management and governance.
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4. Performance
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- Past financial performance of vintage funds
- Reasonable distribution and claw-back policy;
- Reasonable assurance on achievement of the required
returnl
- Reasonable risk/reward trade-off; and
- Reasonable hurdle rate/preferred return.
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5. Client Service and Fees |
- Standard and reasonable fees;
- Periodic reporting on status of portfolio investment;
and
- Reasonableness of terms and conditions and alignment
of interest with LP.
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| II. Direct Private
Equity |
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- Historical and future financial strength of the company;
- Market position with its relative competitive position
within the industry;
- Growth prospects of the company;
- Underlying stability of the company's business;
- Quality and sustainability of earnings;
- Dividend payments and its sustainability;
- Quality of the company's assets;
- Appropriateness of its capital structure including its
gearing;
- Quality, stability and experience of the management team,
Board of Directors and other investors;
- Quality of financial and operating controls and quality
of reporting to management and investors;
- Quality of corporate governance and risk management
policies;
- Return potential of KWAP's investments compared to the
risk/return policies of the investment;
- Potential for the future follow-on investment opportunities;
and
- Exit strategy for KWAP.
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| III. Properties |
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- Located in strategic location for growth in rentals
and capital values
- Able to provide diversification in terms of
locations sectors, types and sizes
- Properties are occupied by good covenant of
leases/tenants for steady income flow
- Potential exit strategies
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About AI Department & Principal Activities
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List of Alternative Investments
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Selection Criteria
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Performance
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