KWAP seeks to maximize the total return of the fund on a sustainable basis through dynamic investment strategies in line with the Fund's risk appetite in order to meet the Fund's obligations.
KWAP targets to achieve a consistent total return over a five (5) year rolling period.
KWAP will pursue both active and passive investment strategies in investing of the Fund. Generally, KWAP invests its Fund directly in its approved asset classes. In addition, KWAP outsources a portion of its Fund to be managed by external investment managers for the purpose of diversification and peer comparison. KWAP will always and whenever possible, refrain from investing in companies principally engaged in alcohol, tobacco, gaming and manufacturing equipments primarily designed or designated for military purposes.
In general our Investment Policy & Guidelines (IPG) is a piece of document which provides detailed guidance and key policies with respect to the investment decision making process. Among the key aspects contained in the IPG are our permissible asset classes, the SAA, performance benchmarks and tactical limits. The following describes the main objectives of the IPG. Due to the sensitive contents of the IPG, we are only allowed to display a select portion of the document.
KWAP has adopted Strategic Asset Allocation (SAA) as a key element in the investment decision making process. The importance of having an appropriate SAA is crucial in terms of deploying capital and fund to asset classes which best demonstrates the most optimal risk return trade off. It is a well known and empirically proven fact that asset allocation is the prime driver of investment performance compared to market timing and security selection.
KWAP believes in the need to continuously engage, whenever possible, in activities and investments which adhere to ethical principles. These considerations are balanced with KWAP’s primary investment objectives and goals.