Fixed Income Portfolio
The Fixed Income Portfolio consist of four main sub-asset classes:
- Sovereign Bonds (Domestic & International)
- Corporate Bonds (Domestic & International)
- Money Market (Ringgit & Foreign Currencies)
In addition to the above, KWAP outsources fixed income mandates to external fund managers for both domestic and international markets.
KWAP undertakes hedging activities utilising products such as FX Forwards, Cross Currency Swaps and Interest Rate Swaps to protect the portfolio value from unfavourable market movements.
KWAP is also active in the domestic REPO market. This is done mainly to help to improve market liquidity by releasing captive holdings of Government Bonds into the secondary market.