KWAP Achieves Record-high Investment Income Of RM18.0 Bln In 2024

KUALA LUMPUR, Feb 13 (Bernama) -- The Retirement Fund Inc (KWAP) recorded its highest-ever investment income of RM18.0 billion in 2024, with an overall return of 12.0 per cent.

In a statement, the fund said domestic investments generated returns of 12.9 per cent, while the international portfolio delivered returns of nine per cent.

“These results stem from public equity, which generated a total return of 21.9 per cent, with domestic equity attaining 23.2 per cent and international equity achieving 16.9 per cent,” it said.

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Meanwhile, KWAP’s fund size grew by RM15.8 billion to RM185.6 billion in its unaudited results for the financial year ended Dec 31, 2024, reflecting a 9.3 per cent increase from RM169.8 billion in 2023.

It said prior to accounting for withdrawals of RM5 billion to partially finance the government’s pension duties, the gross increase of RM20.8 billion year-on-year highlights the continued success of KWAP’s disciplined investment strategy and its focus on sustainable long-term growth.

Since its establishment in 2007, KWAP’s fund size has quadrupled, with an average growth of 9.1 per cent per annum.

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The fund’s asset allocation strategy remains diversified and resilient, with 74.6 per cent of its portfolio invested domestically and 25.4 per cent internationally.

As of Dec 31, 2024, the portfolio was allocated as 51.7 per cent equity, fixed income (32.4 per cent), private equity (5.4 per cent), real estate (5.2 per cent), and infrastructure, with a balance in cash management for liquidity purposes (2.2 per cent).

“This asset allocation strategy has enabled the fund to optimise its investment returns amidst varying market conditions,” it said.

In terms of retirement services, KWAP served more than 810,000 pension recipients throughout Malaysia as of Dec 31, 2024, reflecting a 2.4 per cent increase, or more than 19,000 additional pension recipients compared to 2023.

KWAP maintained a 99.8 per cent service level agreement performance score, well above the 95 per cent threshold.

KWAP chairman Datuk Johan Mahmood Merican said these record results underscore KWAP’s ongoing efforts to ensure the long-term financial sustainability of the pension ecosystem.

“We are confident that our continued focus on strategic investments and sustainability will further strengthen KWAP’s contributions to Malaysia’s pension ecosystem for generations to come,” he added.

-- BERNAMA