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​​​​​​​​​​​​​​​​​​​​​​Equity​​​

Equity as an asset class, plays a significant role in KWAP’s portfolio, generating a considerable portion of KWAP’s total investment income. KWAP's investment in equities is divide​d into two broad categories namely Domestic Equity and International Equity.
 
 
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Our aspiration to become a high performance organisation, close monitoring of the financial performance is a habit. We track diverse set of performance metrics to measure the performance of equities. A great deal of emphasis is placed on two performance indicators being Return on Investment (ROI) which measures the realised return over average fund invested and Total Return, as measured by Time Weighted Rate of Return (TWRR), which tracks the portfolio's total return inclusive of the realised and unrealised gain. Total Returns measurement enables the evaluation of portfolio performance against selected benchmarks. Other performance metrics includes portfolio dividend yield relative to benchmark yield, portfolio beta, Sharpe ratio, information ratio and tracking error. This serves as guide for portfolio managers to identify factors affecting their performance.​
Equity Investment Objectives

Our investment objectives in equities are summarised in the following key points:

  • To achieve consistent and stable income via dividend and re​​alised gain from sales of shares;
  • To grow capital via long term holdings; and​​​
  • To build an optimal portfolio that maximizes return at acceptable level of risk relative to market.​​



Our Portfolio

Domestic Equity​

Allocation for Internal Domestic Equity​

We believe that stock picking is the main driver to outperformance. Investing in the right sector also strengthen our portfolio over the long term taking into account economic cycles and changes in investment climates. Allocation of investment across various sectors ensures that the investment is well diversified and remains within the preferred risk parameters.

Benchmarks

Benchmark are given to the respective portfolios as part of the performance measurement process. Below are the benchmarks for the respective equity investment mandates.

  • ​Conventional for Domestic – FTSE Bursa Malaysia Top 100
  • Conventional for International -  MSCI AC Asia Pacific Ex-Japan & MSCI AC World
  • Shariah -  FBM Hijrah Shariah
  • Small Cap - FBM SmallCap​​​
External Fund Managers (EFM)

Outsourced to External Fund Managers

As part of return enhancement initiative, we allocate a portion of our equity investments to External Fund Managers (EFMs) to manage, with the expectation that the selected EFMs will add value to our portfolio using their experience and expertise.​