KUALA LUMPUR, July 31 – The Retirement Fund Inc (KWAP) plans to increase its international investment exposure to 30 per cent by 2025 although the local market has recently showed an improved performance.
Chief investment officer Hazman Hilmi Sallahuddin said that as of 2023, 24.4 per cent of KWAP’s investment assets were allocated internationally.
“We are currently on track. The local market is much better than before, but in the long term, we aim to balance our investment exposure to 70 per cent local and 30 per cent international, which we believe is more sustainable,” he said during KWAP’s financial year 2023 performance results announcement on Wednesday.
He noted that based on the average 20-year record, international investments had consistently provided better returns.
“I believe it’s essential for us to have a more sustainable strategic asset allocation, which is why we have chosen the 70:30 ratio. While both our domestic and international investments are increasing in value, the share of international investments is growing,” he said.
He stressed that this decision does not imply a reduction in domestic investments, but on the contrary, KWAP is increasing its investments in the local market this year.
“However, the percentage increase may not be substantial,” he added.
In line with the government’s MADANI Economy agenda to boost domestic investments, KWAP remains a significant investor in Malaysia, with 75.6 per cent of its investment assets allocated domestically.
Of the total investment assets, 87.7 per cent, or RM149 billion, are in public investments, while the remaining 12.3 per cent, or RM20.8 billion, are in private markets.
