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

stable returns across the years. In FY2023, the fixed income
portfolio achieved a TWRR of 6.2% attributed to higher
reinvestment yield and overall appreciation in the portfolio’s RM225.22 million
market value throughout the year. Our strategy for this net income for real estate portfolio
portfolio remained focused on maximising the potential
of a diversified fixed income portfolio whilst upholding our
commitment to sustainable investment practices. Private equity portfolio IRR

Our real estate portfolio which represented 5% of KWAP’s 16.1%
total fund size, comprises 21 properties within both
domestic and international markets, four land sites and be an independent department that will focus on managing
developments domestically as well as six real estate funds. our infrastructure portfolio as an asset class. This portfolio
This asset class recorded a net income of RM225.22 currently represents 2% of KWAP’s total fund size. During
million or a 3.2% yield on investment cost. During the year, the year, the top-quartile fund managers in which KWAP
we expanded our portfolio by executing seven transactions has committed to, have generated net IRR of 13.9% and
with approximately RM2.38 billion in terms of executed net MOIC of 1.4 times.
commitment.
Our infrastructure programme has been active in pursuing
Underscoring KWAP’s steadfast commitment to ESg, co-investment opportunities and the effort came to
a significant milestone has been achieved with nine fruition with the successful closing of our investment into
properties attaining environmental certifications and a hyperscale data centre, aligning with our strategic angle
energy efficiency accreditations. Notably, one of our office of mission critical services and domestic infrastructure
asset at 747 Collins Street in Melbourne has garnered the development. Investments in infrastructure facilities are
NABERS 6.0 Energy and NABERS 5.5 Water certifications, essential for developing nations as it improves connectivity,
exemplifying our dedication to sustainable practices and increases trade activities and promotes higher productivity.
resource conservation. This accomplishment solidifies
KWAP’s commitment to responsible investing as KWAP Looking ahead, the changing macroeconomic and
moves towards a more sustainable future. geopolitical landscape will characterise 2024. Inflation is
trending down, potentially allowing major central banks,
KWAP’s private equity portfolio represented 5% of its including the US Federal Reserve, to reverse course and
total fund size. The portfolio remained resilient throughout begin reducing policy rates. However, with interest rates
2023 and has delivered strong returns through the careful still generally restrictive, it is likely to weigh on the global
selection of top-quartile fund managers. The portfolio economic outlook. In addition, selected geopolitical
achieved net Internal Rate of Return (IRR) of 16.1% and a events, namely, the US Presidential election taking place in
net Multiple on Invested Capital (MOIC) of 1.6 times. This November 2024, will potentially become a headwind to the
represents an outperformance of 217 basis points against global economy and financial markets.
the private equity market benchmark, demonstrating our
effective portfolio construction across various sectors and On the other hand, Malaysia’s gDP growth is expected to
geographies. improve, driven by both the continued resilience in domestic
demand as well as a steady recovery in the external sector.
The commitment of RM500 million into Dana Perintis Domestic demand remains supported by the stable labour
was also made under this asset class. Dana Perintis is an market and progress of investment activities whilst exports
allocation specifically focused on developing the domestic are expected to rebound in tandem with the tech upcycle as
markets, Malaysian start-ups and entrepreneurs and well as the improvement in the tourism sector. Meanwhile,
represents our commitment to support the government’s inflation will remain contained premised on the gradual
ongoing efforts in developing the local venture capital implementation of fiscal recalibration which includes the
ecosystem. It also serves as an investment framework that reformation of domestic subsidies and price controls.
drives knowledge transfer which includes developing local
talents. Moving forward, despite the challenging macroeconomic
landscape, we are confident that our investment strategies
We remain optimistic about the growth in the infrastructure and experienced team will persist in delivering value to our
space. As a result, we had spun out our infrastructure unit to stakeholders.
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