Page 13 - KWAP_AR2022

ReAlising A FulFilling FutuRe Annual Report 2022 11
MESSAGE FROM THE
CHIEF EXECUTIVE OFFICER
KWAP’S PENSION
SERVICES PERFORMED
BEYOND THE ExPECTED
SLA THRESHOLD OF
95%, WITH AN
AVERAGE OF 98.42%
PLACING 1,019 MYSTEP
PARTICIPANTS WITHIN
KWAP AND WITH OUR
STRATEGIC PARTNERS
Dear Valued Stakeholders,
In a year characterised by a challenging market
performance, Kumpulan Wang Persaraan (Diperbadankan)
[KWAP] worked hard towards a better tomorrow for our
pensioners or stakeholders. I am proud to report that our
team sustained pension returns and performance on all
fronts, while laying the groundwork for stronger future
performance with the establishment of the three-year
TERAS 5 programme and successful completion of 44%
of the set initiatives to date.
FORTIFYING OUR INVESTMENT PERFORMANCE
Against global uncertainties and volatilities, KWAP’s clear focus
on strategy paid off in ensuring resilience, while a future forward
outlook was cemented with the launch of TERAS 5 in August.
Part of KWAP’s long-term view to ensure the right components are
in place to support sustainable growth in order to benefit pensioners
of today as well as in the future, TERAS 5 is also expected to help
propel KWAP’s investments across a series of different asset
classes, across the globe, through improvements in structure,
governance, people, process and digital. These contribute to
a robust Strategic Asset Allocation that can steadfastly lead to
stronger and sustainable returns to the Fund and played a vital role
in fortifying KWAP’s focus on enhancing investment strategies to
obtain optimal returns in 2022.
In equity, the time-weighted rate of return (TWRR) performance for
domestic and international equity outperformed the benchmark by
643 bps and 40 bps, respectively, altogether outperforming the
blended benchmark by 500 bps.
Amidst the uncertain global macro backdrop in 2022, KWAP’s fixed
income portfolio was robust during the year, generating a return in
TWRR of 2.7%, with an outperformance of 18 bps to its benchmark.
I am also happy to note that as part of KWAP’s continued effort to
move towards a more sustainable future, our fixed income portfolio
has enhanced its investment processes to take Environmental,
Social and Governance (ESG) into consideration.