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ENRICHING PERFORMANCE AND COMMITMENTS ENRICHING ACCOUNTABILITY AND INTEGRITY ENRICHING RESILIENCE AND SUSTAINABLE GROWTH OTHER INFORMATION

FINANCIAL REVIEW
The conclusion of the 2023 financial year marked a notable Accounting Rate of Return (ARR) (%)
success for KWAP, amidst a challenging global economic
landscape caused by growing geopolitical tensions and 4.67 5.88 6.39 0.17 5.88
sluggish recovery. Despite these uncertainties, KWAP
managed to deliver commendable financial results across
all asset classes and major markets.

As at 31 December 2023, KWAP’s fund size grew
to RM169.82 billion, marking a growth of 7.4% from
RM158.10 billion as at 31 December 2022, driven by a 2019 2020 2021 2022 2023
strong performance throughout the year. Net Income (RM billion)

Net Income recovered significantly to RM9.65 billion from
RM0.26 billion a year ago, whereas Total Comprehensive 6.67 8.87 9.99 0.26 9.65
Income surged to RM12.03 billion compared to a Total
Comprehensive Loss of RM0.57 billion recorded in
FY2022. These improvements came primarily from the
strong performance of both our equity and fixed income
portfolios which translated into higher net unrealised
gains for our financial assets classified as Fair Value 2019 2020 2021 2022 2023
Through Profit Or Loss (FVTPL) and Fair Value Through
Other Comprehensive Income (FVOCI). Gross Investment Income

The FVTPL portfolio’s resilient performance recorded KWAP recorded a gross Investment Income (gII) of
an unrealised gain of RM3.06 billion primarily from the RM6.75 billion, 3.7% lower than RM7.01 billion in FY2022,
international market, in line with the S&P500 that indicated due to the lower divestment gain from our International
a double-digit return, rising 24.2% year-on-year. KWAP’s Equity portfolios.
FVOCI portfolio on the other hand, recorded an unrealised
gain of RM1.06 billion from our domestic bond market. 48% of the GII was contributed by the equity portfolio,
40% by the fixed income portfolio, and the remaining
This robust performance translated to an Accounting Rate 12% by both the private equity and real estate portfolios.
of Return (ARR) of 5.88%, a notable increase from the
0.17% reported in FY2022. 77% of the GII was contributed by KWAP’s investment in
domestic market whilst the remaining 23% was from the
In fulfilling our duty to assist the Federal government to international investments.
fund the pension liability as stipulated in the Retirement
Fund Act 2007 (Act 662), RM3 billion was withdrawn from
the Fund by the Federal government during the year
whilst the remaining funds were reinvested for future value
creation.

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