​​Malaysian Government Securities (MGS)

Overview

The Malaysian Government Securities (MGS) portfolios are designed to maximise yields while allowing for the opportunity of capital appreciation via deployment of the appropriate duration, issues in example on the run or off-the run papers, and yield curve. We are very active in the both the local primary and secondary markets. The management of portfolio positions is via duration management and the coupon return is via the optimisation of the portfolio yield.

Core Objective

Investment of KWAP funds in fixed income securities for purpose of investment and short term positioning strategy. 

Generation of both short and long term competitive returns from fixed ​​income securities in accordance to th​e Investment Policy and Guidelines of KWAP.

 

Types of Investment Instrument

The various types of Malaysian Government Investment Securities invested by KWAP are as follows:

 
  • Malaysian Government Securities (MGS) : interest bearing long-term bonds issued by the Government of Malaysia with an original maturity of more than one year.​​
  • Malaysian Treasury Bills (MTB) : short-term securities issued by the Government of Malaysia with original maturity of less than one year.
  • Government Investment Issues (GII) and Malaysian Islamic Treasury Bills (MITB) : long-term and short-term non-interest bearing securities issued by the Government of Malaysia based on Islamic principles.
 

Portfolio Selection Process

 
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