We strive to deliver superior returns to meet our stakeholders' needs and objectives by creating an optimal portfolio that fits KWAP's risk/return profile. A well-defined investment processes guide the equity team to deliver the objectives. These portfolios are governed by clear investment mandate and parameters such as:
- Retirement Fund Act 2007 (Act 662)
- Capital Markets and Services Act 2007 (Act 671)
- KWAP's Investment Policy and Guidelines
- Discretionary Authority Limit
We carefully construct and closely monitor our portfolios to adapt to the ever-changing economic environment and market trends. We focus on active portfolio management whereby stock picking is an inevitable and crucial part of our investment process.
As a pension fund, we place a great emphasis on selecting fundamentally sound companies with good business model to ensure sustainability in the long term. Some criteria of the preferred companies are as follows:
- Good track record on earnings delivery
- Clear earnings direction and stable free cash flow
- High dividend yield
- Attractive valuation
- Strong and experienced management team
- Growing industry
- Good corporate governance
As common shares are attached with voting rights, we actively participate in the AGM and EGM of the companies that we have holdings in. All voting decisions are guided by KWAP's Voting Guideline that has been approved by our Investment Panel. KWAP appoints two representative officers to attend the meetings and vote on behalf of KWAP.