THE Retirement Fund Inc (KWAP) registered its highest-ever investment income of RM18.0 billion in 2024, delivering total returns of 12.0%.

Domestic investments generated returns of 12.9%, while the international portfolio delivered returns of 9.0%.

The results stem from public equity which generated a total return of 21.9%, with domestic equity attaining 23.2% and international equity achieving 16.9%, it said in a statement today.

Its fund size grew by RM15.8 billion to RM185.6 billion, up 9.3% increase from RM169.8 billion in 2023. Since its establishment in 2007, KWAP’s fund size has quadrupled, with an average growth of 9.1% per annum.

KWAP CEO Datuk Nik Amlizan Mohamed said the 2024 performance reflected its disciplined investment approach, underpinned by the resilience of Malaysia’s economy.

“Although global uncertainties and geopolitical risks remain, we will stay vigilant, adapting our strategies to mitigate risks and seize emerging opportunities,” she said in a statement today.

Its chairman Datuk Johan Mahmood Merican said the results supports the long-term financial sustainability of the pension ecosystem.

On asset allocation strategy, 74.6% of its portfolio were invested domestically and 25.4% internationally.

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

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 its investment strategy and focus on sustainable long-term growth. –TMR