Source of Publication : The Sun
Date: 9 December 2012
Kumpulan Wang Persaraan (Diperbadankan) (KWAP) posted a 21.9% increase in gross investment income to RM4.33 billion for the third quarter of this year (Q3) from RM3.55 billion a year ago.
This translates into a gross return on investment of 5.25%.
After incorporating the provision of allowances for diminution in value and operating expenditures, net income registered amounted to RM4.31 billion for Q3, KWAP said in a statement released on Friday.
KWAP's fund size rose 14.5% to RM86.63 billion in Q3 from RM75.63 billion a year ago.
KWAP CEO Datuk Azian Mohd Noh said the stock market was the main contributor to Q3 performance.
"Investments in equity contributed RM2.19 billion or 50.7% of the total investment income. Fixed income assets namely Malaysian Government Securities, loans and private debt securities and money market instruments contributed RM745.79 million, RM908.60 million and RM271.66 million respectively, while the remaining balance was contributed by alternative investment," she said in a statement.
As at Sept 30 2012, 94.1% of KWAP's funds are invested domestically and the rest internationally.
Azian said KWAP will continue to engage in a more defensive and capital-preserving strategy and at the same time leverage on the resilience of the Malaysian economy which continues to benefit from positive domestic demand factors.