Jul
17

Malaysia’s $30 Billion Pension Fund Goes Long as Rate-Cut Hedge

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  • Fund considering cutting annual return target, CEO says
  • CEO prefers bonds with maturities of 10 years or more

Malaysia’s second-largest pension fund expects lower returns this year and plans to buy more bonds with maturities of 10 years or more to hedge against further interest-rate cuts.

Kumpulan Wang Persaraan (Diperbadankan), which manages about 120 billion ringgit ($30 billion), is also considering lowering its 5 percent minimum return target because of recently increased uncertainty in global markets, said Chief Executive Officer Wan Kamaruzaman Wan Ahmad. The fund achieved a 6.15 percent gross return on investment in 2014, he said…

Malaysia’s $30 Billion Pension Fund Goes Long as Rate-Cut Hedge

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