Malaysia’s KWAP Seeks to Raise Foreign Portfolio to 15%

Fund in early discussions with China’s Alibaba.

To boost performance after sluggish domestic returns, Malaysia’s $30 billion pension fund aims to boost the overseas section of its portfolio from its current 12% to as much as 15%, Reuters reports.

In 2018, Malaysia’s Retirement Fund Inc., known locally as Kumpulan Wang Persaraan (KWAP) will review its current asset allocation strategy and then decide which foreign investments to further allocate to. Current foreign investments include app-based cab company UBER, KWAP’s first foreign disruptive-technology investment.

“The target is to increase by 7% to 19%, but we might look at 15%, which is more realistic,” KWAP CEO Wan Kamaruzaman Wan Ahmad told Reuters at the Reuters Global Investment 2018 Outlook Summit.

Ahmad declined to specify which regions or sectors the fund is considering, although he did note that it was in early talks with Chinese e-commerce firm Alibaba Group Holding Ltd. in participating in a fund it’s looking to raise regarding regional small businesses in the Digital Free Trade Zone.

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