Malaysia’s second largest pension fund Kumpulan Wang Persaraan (KWAP) has launched a 6 billion ringgit (US$1.28 billion) alternative investment fund.
The Dana Pemacu or Driver Fund will target key economic sectors including food security, education, the silver economy and healthcare, energy transition, digital economy and financial inclusion.
Half of the fund will go into shariah-compliant investments, KWAP, which manages retirement savings of civil servants, says in a statement on May 28.
The fund will be managed by local and foreign managers through separately managed accounts across three different asset classes: private equity, infrastructure and real estate.
According to KWAP Chief Executive Officer Nik Amlizan Mohamed, the fund will be “instrumental for the growth and progress of the nation”.
“Our plan is to deploy this investment through the creation of partnership models between local talents and international fund managers, which will serve to catalyse the private market investment ecosystem in Malaysia,” she says.
“Furthermore, this initiative will bring global best practices and expertise to the local market as well as driving knowledge-transfer and industry network – enhancing local talents,” she adds.
KWAP managed 184.5 billion ringgit of assets as of end-July 2023.
