KUALA LUMPUR, Aug 3 ― Retirement Fund (Incorporated) (KWAP) will embark on a diversification strategy and aims to achieve seven per cent return by 2025 from the current six per cent.
Chief executive officer Nik Amlizan Mohamed said the fund would focus on private investments namely private equity, infrastructure and real estate, going forward, in realising the targets.
“We see the returns from the public markets have not been on the high trajectory from a growth perspective compared to the private market, but we are seeing double digit growth in returns from the private market base.
“Going forward, we are looking at 80 per cent public investment and 20 per cent private investment from the current composition of 90 per cent to 10 per cent.
“That's why our TERAS 5 focus is to ensure the capabilities skill set is enhanced,” she said in a press conference after the TERAS 5 launch officiated by Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz here today.
Nik Amlizan said KWAP needs to be able to deep dive into particular investments for the entity to know the assets well, know its investments well and know the risk return profile well.
Meanwhile, backed by a strong foundation of achieving about six per cent returns in the past 10 years, she said TERAS 5 will support the target of seven per cent returns while improving its services to pensioners.
“We intend to provide services that are a lot more seamless for our pensioners, for example, we have the MyPesara app which currently has about 200,000 downloads.
“Going forward we intend to put more value-added services on the app, which is why one of the TERAS 5 primary thrust enablers is on digital. We intend to fully utilise this digital platform and become a digital native organisation in the future,” she said. ― Bernama
