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ENRICHING tHE FUtURE ENRICHING NAtIoNAL PRoGRESS ENRICHING StAKEHoLDER VALUE ENRICHING SUStAINABLE IMPACt

FINANCIAL CAPItAL (CONtINuED)

Annualised time-Weighted Rate of Return (%) During the year under review, our overall equity portfolio
recorded TWRR of 11.0% surpassing the blended benchmark
of 6.9% and generating added value of 403 basis points.
6.25 6.74 5.94 1.12 8.22 Our internal domestic equity portfolio managed to deliver a
TWRR of 4.4% against the benchmark of 0.6%, indicating an
outperformance of 378 basis points. The internal international
equity portfolio achieved a TWRR of 29.1%, outperforming
the benchmark return of 25.1% by 396 basis points. These
performance indicators underscore our investment strategy’s
emphasis on maintaining a well-diversified portfolio across
2019 2020 2021 2022 2023
various sectors and countries coupled with timely active
rebalancing. The diversification strategy had effectively
Asset Allocation (AA)
assisted us in navigating the volatile nature of equity
investments and demonstrated our ability to maneuver our
4% 2%
5% investment strategies in different market conditions.
5%
Amidst a generally subdued domestic equity market,
our domestic equity EFMs collectively achieved a TWRR
48% of 6.9%, surpassing the FBM100 index benchmark by
624 basis points. On the international front, our EFMs in
36% aggregate recorded a TWRR of 29.4%, outperforming
the benchmark by 422 basis points. KWAP maintained
regular quarterly meetings with all equity EFMs to assess
Public Equity Private Equity their performance and compliance, alongside discussions
Fixed Income Money Market on investment strategies and prospects. Additionally,
Real Estate Infrastructures
throughout the year, visits were made to the premises of
In conjunction with the announcement of various Ekonomi respective EFMs, whilst portfolios on the watchlist subject
MADANI framework initiatives, including the National to more intensive monthly monitoring.
Energy Transition Roadmap and New Industrial Master
Plan 2030, KWAP strategically invests in a mix of assets Fixed income represented 36% of KWAP’s total fund size.
to foster the growth of the fund size. As at 31 December This portfolio which consists of sub-asset classes such as
2023, KWAP’s Asset Allocation outlines an effective Domestic Sovereign Bonds, Domestic Corporate Bonds
distribution encompassing 48% public equity, 36% fixed and Loans as well as International Bonds served as the
income, 5% real estate, 5% private equity, 2% infrastructure ballast of KWAP’s investment performance that generates
and the remaining 4% in money market. Aligning with the
government’s Ekonomi MADANI framework to stimulate
domestic investments, 76% of KWAP’s portfolio focused on Annualised Total Fund TWRR
the local market. Whereas, the remaining 24% of KWAP’s
portfolio focused on international investment. This strategy 8.2%
not only supports national economic growth but also
leverages our deep understanding of the Malaysian market.
As at 31 December 2023, KWAP’s exposure to equity Equity portfolio TWRR
assets class stood at RM81.38 billion representing 48%
of KWAP’s total assets and retaining its position as our 11.0%
largest asset class. Within this allocation, domestic equity
assets constitute the most of our overall equity investment
at 70%, with the remaining 30% invested in international
equity markets. Of the total equity exposure, 85% was Fixed income portfolio TWRR
managed internally with the balance outsourced to our 6.2%
external fund managers (EFMs).

48 KUMPULAN WANG PERSARAAN (DIPERBADANKAN) i INtEGRAtED REPoRt 2023