KWAP's fund size increases by 11.93 per cent to RM78.93 bil

KUALA LUMPUR: The Retirement Fund Inc’s (KWAP) fund size increased by 11.93 per cent, or RM8.41 billion, to RM78.93 billion last year from RM70.52 billion in 2010.

In announcing the financial results yesterday, Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah said the fund’s investment income was RM4.66 billion in 2011, which translated into a gross return on investment of 6.3 per cent.

It was one per cent higher than RM4.62 billion recorded in 2010.

“At group level, a total of RM5.2 billion was recorded last year against RM5 billion in 2010,” he said.

He said contributions from employers and federal government amounted to RM4.02 billion during the year.

He said equities and fixed income were again the major contributors to KWAP’s investment income last year with 47.17 per cent from equity investments, fixed income (50.18 per cent) and alternative investments (2.02 per cent).

“All asset classes invested by KWAP registered healthy gains last year with equity recorded a gross return on investment of 10.67 per cent, private equity (13.39 per cent), investment in Malaysian government securities (5.37 per cent) and investment in loans and private debt securities (5.47 per cent),” he said.

He said for the first half of this year, KWAP’s return on investment was 3.44 per cent.

“This is a commendable performance if we consider all the negative news flow and external developments,” he said.

He said the government has every intention to ensure the success of its affiliates.

“As a government-linked investment company, it is our hope that KWAP continues to take on new challenges and capitalise on the various opportunities and business initiatives that will help it generate good and commercially attractive returns to its funds and ultimately its main stakeholders,” he said.

Earlier, Ahmad Husni also announced that KWAP has been accredited with ISO 9001:2008 on investment management in domestic equity, domestic fixed income and international property by Moody International Certification Malaysia Sdn Bhd.

He said the accreditation was an endorsement of KWAP’s commitment towards quality management and best practices that would boost confidence among its stakeholders.