KWAP Investment Policy & Guidelines (IPG) requires a minimum of twice yearly evaluations of its counterparties. High emphasis is placed on broker evaluations with the expectation of the best level of service from our panel of brokers. This is undertaken to ensure that the quality of the services delivered by our panel of brokers commensurate with the level of business given. A clear and transparent method of broker evaluation has been established.
Brokers are evaluated on 3 major criteria namely Dealing, Research and Back Office. The table below provides the details of each evaluation criteria.
The brokers are categorised into 3 different tier groups which determine the business allocation to be given for that particular period. To ensure transparency, the evaluation results are communicated to the Investment Committee, the Investment Panel as well as the respective brokers.
At present, KWAP's panel of brokers consists of locally incorporated and foreign affiliated brokers. We only include into our panel, brokers that fulfil the minimum requirements as stipulated by the IPG and those that surpass the minimum threshold mark of each periodic evaluation.