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8 KUMPULAN WANG PERSARAAN (DIPERBADANKAN) REALISING A FULFILLING FUtURE

MESSAGE FROM THE
CHAIRMAN

Successfully completed the
New SAA to achieve higher
Completed the first phase Return Target of 7% per first ABMS Surveillance Audit
of TERAS 5 initiatives last year with no issuance of
annum by 2025
Non-Conformance Report
However, amidst the positive recovery, cost of living woes were on the rise OUR INVESTMENT STRATEGY
as inflation increased from 2.5% in 2021 to 3.3% during the year, which led
to Bank Negara Malaysia (BNM) raising the Overnight Policy Rate (OPR) four At its core, KWAP’s role is to deliver the
times at 25bps each, from 1.75% in 2021 to 2.75% in 2022. best investment returns. To this end,
KWAP’s Strategic Asset Allocation (SAA)
Amidst these push and pull factors, KWAP resiliently maintained is continually reviewed against changing
balance between pursuing growth and adopting prudence in the face of market environments for optimum returns.
uncertainties. The focus for the year was devoted to sustaining net income With our goal set towards recording gross
while achieving 44% completion rate of KWAP’s multi-year TERAS 5 fund size of RM200 billion by 2025, from
programme to catalyse operational agility and future-readiness.
the current gross fund size of RM175.60
STRENGTHENING VALUE DELIVERY billion, the SAA review was conducted this
year to propel KWAP to achieve higher
Focused on fortifying core strengths, KWAP sustained a fund size of risk-adjusted returns at 7% per annum
RM158.10 billion, while the annualised time-weighted rate of return (TWRR), as compared to returns of 5% to 6% per
over a 10-year rolling period (%) was 5.3%, exceeding the benchmark by annum under the previous SAA. This was
55 bps. Meanwhile, in term of gross investment income, KWAP recorded carried out with the oversight of the Board
RM7.01 billion, an increase by 10.7% against RM6.33 billion in FY2021. and Investment Panel and focused on
Outreach and communication was prioritised, KWAP reached out with fortifying KWAP’s overarching investment
educational and informational programmes that help increase financial strategy taking total risk appetite and
security upon retirement through physical and online engagements with long-term investment perspectives into
external and internal stakeholders. I am proud to say we connected with consideration.
28,243 individuals throughout the year that represent 114% of our target To achieve the higher return target, the
group. new SAA has allowed for an increase of

Our outreach success is a good lead up to KWAP’s new Brand Strategy the fund allocation on international and
Plan & Roadmap which was approved in October 2022 to enhance targeted private market investments to 30% and
publicity and engagement efforts towards KWAP’s key stakeholders with 24% respectively, as well as diversifying
the new tagline – Your Retirement Companion. This aptly conveys the its portfolio into new higher-yielding return
improved relationships we seek to forge as we work for the betterment of asset classes to adapt to the volatile
our stakeholders’ future. macroeconomic and capital markets
landscape.
On the service front, the year saw KWAP receiving an international
recognition award from the ASEAN Social Security Association (ASSA) Increased allocation to private markets
for the implementation of a Business Intelligence dashboard to enable was initiated by introducing private
monitoring of pension processing in real-time. This boosts KWAP’s credit into KWAP’s portfolio of domestic
reputation among international peers in the Social Security industry, and is and international equities, fixed income
a precursor to many more TERAS 5 digital initiatives that are set to enhance securities, private equity, infrastructure and
customer experience. real estate.