KWAP invest in both conventional and Islamic corporate bonds comprising of the Fixed Rate Serial Bonds, Medium Term Notes as well as Commercial Papers.
We have a dedicated team responsible for the credit selection and assessment of securities in the corporate bond portfolio. We seek to enhance the value in the fixed income portfolio via the utilisation of the four (4) primary approaches:
- Analytical credit assessment of securities with the implementation of in-house credit scoring system
- Stringent security selection with the minimum rating requirement of A3 by RAM or A- by MARC for all bond investments
- Ongoing surveillance on the current securities holding to contain credit risk and the enforcement of precautionary measures in the event of adverse credit
- Strategically position the portfolio according to the yield curve structure and outlook