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Khazanah Nasional Berhad

PRI reporting framework 2019

You are in Strategy and Governance » Investment policy

Investment policy

SG 01. RI policy and coverage

New selection options have been added to this indicator. Please review your prefilled responses carefully.

01.1. Indicate if you have an investment policy that covers your responsible investment approach.

01.2. Indicate the components/types and coverage of your policy.

Select all that apply

Policy components/types

Coverage by AUM

01.3. Indicate if the investment policy covers any of the following

01.4. Describe your organisation’s investment principles and overall investment strategy, interpretation of fiduciary (or equivalent) duties,and how they consider ESG factors and real economy impact.

 

  • Khazanah's mandate is to grow Malaysia's long-term wealth through dual-objectives:
    • Commercial objective: Achieve optimal risk-adjusted returns, to grow financial assets, and diversify sources of revenue for the nation
    • Strategic objective: Undertake strategic investments with long-term economic benefits for Malaysia, or Malaysians, including holding strategic national assets. 
  • In accordance with our mandate to grow Malaysia’s long-term wealth, we will invest only where an appropriate risk-adjusted financial return can be achieved. In addition, strategic investments must also deliver identified economic impact outcomes.
  • We believe in creating sustainable value through appropriate engagement with the companies we invest in and the external investment managers and advisors we use.
  • We will adopt an ethicel lens and we will abide by responsible investing practices that take into account environmental, social and governance (ESG) factors to better manage risk and generate sustainable, long-term returns. We are committed to the UN Principles for Responsible Investment (UNPRI) and the Malaysian Code for Institutional Investors which promote the active integration of ESG considerations into investment analysis and decision-making, and asset ownership

01.5. Provide a brief description of the key elements, any variations or exceptions to your investment policy that covers your responsible investment approach. [Optional]

01.6. Additional information [Optional].

          Our Investment Policy Statement was only approved by our Board of Directors in November 2018. While we had begun implementing responsible investment screening into our investment decision making prior to this, and viewed our investment managing and monitoring in totality (including governance, societal and environmental factors as and where relevant and material),  we are now in the process of formally integrating responsible investment into our investment processes.
        
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SG 01 CC. Climate risk (Not Applicable)


SG 02. Publicly available RI policy or guidance documents

New selection options have been added to this indicator. Please review your prefilled responses carefully.

02.1. Indicate which of your investment policy documents (if any) are publicly available. Provide a URL and an attachment of the document.

URL/Attachment

02.2. Indicate if any of your investment policy components are publicly available. Provide URL and an attachment of the document.

URL/Attachment

URL/Attachment

URL/Attachment

02.3. Additional information [Optional].


SG 03. Conflicts of interest

03.1. Indicate if your organisation has a policy on managing potential conflicts of interest in the investment process.

03.2. Describe your policy on managing potential conflicts of interest in the investment process.

  • As a general rule, employees of Khazanah shall:
    • not acquire or hold securities in a personal capacity in any Khazanah's investee companies
    • refrain from being involved in the appraisal, evaluation and decision making of any potential investments that may give rise to appearance of conflict arising from past or even future relationships where we know or ought to have known of such potential relationship. In addition, employees shall declare such relationships in writing to the Chief Risk Officer ("CRO")
    • refrain from serving as a director or equivalent senior position (excluding situations where we serve as Khazanah Nominee Director
    • refrain from serving any other position in any other organisation or bodies representing private interest

03.3. Additional information. [Optional]


SG 04. Identifying incidents occurring within portfolios (Not Completed)


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