Page 64 - KWAP_AR2022

62 KUMPULAN WANG PERSARAAN (DIPERBADANKAN) FoR BEttER PERFoRMANcE

INVESTMENT REVIEW
ASSET CLASS REVIEw

EXTERNALLY-MANAGED
EFM Exposure by Mandate Type
KWAP has outsourced a portion of its fund to fixed
income EFMs since 2006. The outsourcing of funds
continues to be part of KWAP’s diversification 36.4%
strategy and as investment income enhancement. The
EFM portfolios consist of two domestic mandates,
which are domestic conventional bond and domestic 63.6%
sukuk. As at 31 December 2022, the fixed income
exposure managed externally stood at 3.6% of total
investment assets from the initial capital fund size of • Domestic Conventional Bond • Domestic Sukuk
RM150 million in 2006. In terms of the exposure to types
of mandate outsourced, 63.6% was invested in the List of Domestic Fixed Income External Fund Managers
domestic conventional bond while the remaining 36.4% as at 31 December 2022
was in the domestic sukuk.
Domestic External Fund Managers
As at 31 December 2022, the market value of KWAP Principal Asset Management Berhad
fixed income EFMs stood at 9.8% of overall KWAP fixed
income investments excluding cash and equivalents AmFunds Management Berhad
exposure as compared to 10.4% in the previous year. AHAM Asset Management Berhad
In terms of its performance, the domestic fixed income Amundi Malaysia Sdn Bhd
EFMs outperformed the stipulated benchmark by 7 bps
on TWRR basis as at 31 December 2022. Maybank Islamic Asset Management Sdn Bhd
Nomura Islamic Asset Management Sdn Bhd
KWAP actively monitors its EFMs through continuous
engagements, periodic performance reviews and visits to RHB Islamic International Asset Management Berhad
EFMs’ business premises. As the bond market experience Maybank Asset Management Sdn Bhd
heightened volatility in 2022 amid rising rates environment, Franklin Templeton GSC Asset Management Sdn Bhd
more regular engagements and performance reviews with AIIMAN Asset Management Sdn Bhd
EFMs were conducted via physical and virtual meetings
to better understand strategies undertaken by the EFMs Apart from KWAP’s continuous engagement with the
while ensuring the health of the portfolio. A total of nine EFMs, KWAP also hosted a Chief Executive Officer
EFMs premise visits including compliance visits were Mandate event to the EFMs in April 2022, which was
conducted to review EFM business operations and their aimed at sharing KWAP’s investment objectives for the
adherence to the terms of the investment management year and convey expectations to the EFMs in terms of
agreement (IMA) throughout 2022. performance requirement and emphasising the need to
comply to the IMA. Other key messages delivered during
the event include the sharing of KWAP’s ESG journey
and KWAP’s expectations from the EFMs to uphold
strong ESG practices.