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

Net Income Fund Size
KWAP’s Net Income of RM9.65 billion was driven by the KWAP Fund Size comprised of the allocation of statutory
significant increase in the net Unrealised gain on Financial funds from the Federal Government of RM28.50 billion,
Assets Designated as FVTPL of RM3.54 billion, compared statutory and local authorities’ contribution of RM64.07
to a net unrealised loss of RM5.55 billion in FY2022. In billion and accumulated reserves of RM97.75 billion.
2023, the MSCI World Index (MXWD Index) saw a return
of 20.1% within the year, with the S&P 500 and MSCI Asia The accumulated contributions and reserves were partially
Pacific posting returns of 24.2% and 8.8%, respectively. offset by the accumulated withdrawal by the Federal
Back home in Malaysia, the FBMKLCI which opened the government of RM20.50 billion.
year at 1,495 points recorded a return of -2.7% to close KWAP closed the year with a Fund Size of RM169.82
the year at 1,455. These returns across markets translated billion, a 7.4% increase from RM158.10 billion in FY2022.
to a net unrealised gain from both the international equity
and domestic equity trading portfolios of RM3.07 billion Cash and Cash Equivalents
and RM0.09 billion respectively. Our private equity
portfolio also produced an unrealised gain of RM0.38 The cash and cash equivalents amounted to RM5.32 billion
billion. compared to RM12.26 billion in the previous financial
year, whereby RM2.80 billion were short-term deposits
and placements with licensed Financial Institution.

INVEStMENt REVIEW

Economic review
Several important events defined 2023’s macro landscape. Meanwhile, headline inflation eased to 2.5% in 2023 from
From surging inflation to the US regional banking crisis, 3.3% in 2022 attributed to softer food and commodity
macro dynamics in the form of growth prospects and interest prices whilst core inflation remained constant at 3.0%
rates were pivotal in shaping financial markets. The global (2022: 3.0%) reflective of stable underlying demand
economy faced many challenges in terms of escalating conditions. Accordingly, Bank Negara Malaysia
geopolitical tensions, high inflation and rising interest rates. (BNM) continued to normalise the degree of monetary
accommodation, raising the Overnight Policy Rate (OPR)
Despite prevailing concerns about persistent inflation, by 25 basis points in May 2023 to 3.00% before pausing
global disinflationary trends deepened and expanded for the rest of the year, whilst keeping policy supportive of
throughout the year. Surprisingly, this disinflationary phase the overall economic outlook.
did not harm the labour market, revealing the strength of
employment sectors in many developed economies. Despite global uncertainties and volatilities faced in
FY2023, we remain steadfast in our commitment to deliver
Domestically, GDP grew by 3.6% in 2023, moderating from the best investment returns through our investment
the high base of 8.7% in 2022 mainly due to the external sector strategy. This strategy has paid off as KWAP’s total fund
drag from global trade headwinds and tighter global monetary recorded an annual time-weighted rate of return (TWRR)
policy. Nevertheless, the resilience of domestic demand of 8.2% in FY2023, a significant improvement from the
continued to provide robust support given steady progress 1.1% recorded in FY2022. As a long-term investor, this
in investment projects, recovery in the labour market, national performance has contributed to our 10-year rolling return
catalytic roadmaps and high-impact initiatives. metric measurement which recorded a return of 5.1% at
the end of FY2023, outperformed the benchmark by 313
basis points for the same period.
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