KUALA LUMPUR: The Retirement Fund Inc (KWAP) registered gross income of RM9.03 billion in 2017, the highest since its inception.
This is a huge increase from the RM6.36 billion income registered in 2016.
CEO Wan Kamaruzaman Wan Ahmad said the total fund size increased to RM140.80 billion, exceeding its initial target of RM136.6 billion for last year.
“Our fund size of RM140.80 billion reflects a staggering growth of 235.72% in the short span of a decade,” he told a media briefing here today.
Wan Kamaruzaman further explained that in 2016, KWAP’s total fund size was RM126 billion and this grew by 12.64% in 2017.
KWAP is the second largest pension fund in the country after the Employees Provident Fund.
“We have recorded growth of RM15.8 billion, the highest growth in fund size over 10 years, while the overall gross return on investment increased by 0.42% to 5.77% from 5.35% recorded in 2016,” Wan Kamaruzaman said.
Total collection for 2017 also increased by 4.96% to RM3.51 billion, comprising RM3.01 billion in pension contribution and RM500 million of the federal government’s contribution.
“Our asset allocation comprised 54% fixed income, 36% equity and 10% alternative investment. But, now, we are working on a 46% fixed income, 40% in equities and 14% alternative investments,” Wan Kamaruzaman said.