Malaysian pension fund eyes more tech investments

KUALA LUMPUR • Malaysia's US$30 billion (S$40.8 billion) pension fund, Kumpulan Wang Persaraan (Kwap), is looking to pump in more money into technology firms, following its recent foray into the sector with an investment in what sources have identified as ride- sharing service Uber.

With RM123 billion (S$40.5 billion) of assets under management, Kwap is diversifying into new sectors at a time when returns across its investments have slowed.

It has committed to a US$30 million investment in its "first disruptive technology deal" in a foreign firm, chief executive officer (CEO) Wan Kamaruzaman Wan Ahmad told Reuters.

It is a "global technology company with a market value of over US$60 billion", he said.

While he did not reveal the name of the firm, two sources close to the deal said Kwap had invested the amount in Uber Technologies, but declined to be named as the deal was still under wraps.

Kwap expects a 5 per cent return on total investment this year. It posted a return of 5.4 per cent last year, lower than a targeted 6 per cent. About 90 per cent of its investments are in traditional assets such as fixed income and equity. The remaining 10 per cent goes to alternative investments like private equity, but the CEO said the that allocation may rise to 15 per cent.

Mr Wan Kamaruzaman said the fund intends to increase exposure in logistics, healthcare, education and consumer goods, adding that it also sees opportunities in the United Kingdom.

REUTERS

A version of this article appeared in the print edition of The Straits Times on September 22, 2016, with the headline 'Malaysian pension fund eyes more tech investments'. Print Edition | Subscribe