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FoR betteR PeRFoRmAnce  Annual Report 2022  61









          LOANS                                             INTERNATIONAL FIXED INCOME
          KWAP’s exposure in loan stood at 0.6% of total investment   As at 31 December 2022, KWAP’s international fixed
          assets as at 31 December 2022. No new loan was disbursed   income portfolio’s market value stood at 0.3% as compared
          for year 2022. Loan holdings were reduced significantly by   to 0.4% in 2021, of total investment assets. Given the
          RM1.97 billion due to maturity and capital repayment of   elevated interest rates globally, the TWRR for international
          outstanding loans. KWAP’s loan portfolio recorded a return   fixed income portfolio came in at -6.53%. In anticipation
          in TWRR of 6.31%, with an outperformance of 186 basis
          points in 2022.                                   of global central banks embarking on their hiking cycles,
                                                            which may result in higher bond yields, KWAP has been
          Furthermore, income generated from the loan portfolio for   reducing its exposure to international bonds and waiting for
          year 2022 was RM106.63 million, in line with the shrinking   an opportunistic time to re-enter the market. Our portfolio
          of loan portfolio size in 2022.                   remain well diversified in terms of geography and currency
                                                            as we remain invested in across seven countries and six
         MONEY MARKET                                       currencies.

         As at 31 December 2022, KWAP’s money market investment   Global Fixed Income Holdings as at 31 December
         stood at 5.9% compared to 4.8% of KWAP’s total investment   2022 by Country
         assets at the beginning of 2022 while TWRR was recorded
         at 1.85%. From the total money market investment, more            2.4%        10.2%
         than 70% was in MYR exposure while the remaining was                               0.8%
         distributed in USD, GBP, AUD and EUR accounts.                                       0.8%
           MYR Money Market Investment                                                        21.3%
                                                                   53.7%
                         3.7%       0.3%
                                         96.0%                                             11.0%
                                                                      •   Australia   •  South Korea
                                                                      •  China        •   Malaysia
                                                                      •   Hong Kong   •   Thailand
                                                                      •  Indonesia



             •  Deposit     •  NIDC       •  Commercial      Global Fixed Income Holdings as at 31 December
                                            Paper            2022 by Currency

           Foreign Currency Money Market Investment                                     10.2%

                                         0.2%                                                10.6%
                    19.9%                                                                    0.4%
                                                                                              5.4%
                                                                    71.0%                     2.4%
                  7.6%

                                         72.4%
                                                                 •   AUD        •  CNH          •   THB
                •  USD   •  GBP   •  AUD   •  EUR                •  KRW         •   IDR         •   USD
   58   59   60   61   62   63   64   65   66   67   68