KUALA LUMPUR, Dec 24 2016 : Permodalan Nasional Bhd (PNB) chairman, Tan Sri Abdul Wahid Omar, today said the lower investment return for Amanah Saham Bumiputera (ASB) compared with the previous years is due to the effects of the uncertain global economy, but the rate is still competitive.
Last Thursday, PNB announced an income distribution of 6.75 sen a unit and bonus of 0.50 sen a unit for ASB for the financial year ending Dec 31, 2016.
In 2015, it announced an income distribution of 7.25 sen a unit and bonus of 0.50 sen a unit, in 2014 (7.50 sen a unit, one sen a unit), 2013 (7.70 sen a unit, one sen a unit), 2012 (7.75 sen a unit, 1.15 sen a unit), 2011 (7.65 sen a unit, 1.15 sen a unit), and 2010 (7.50 sen a unit, 1.25 sen a unit).
Abdul Wahid said the lower return this year was also influenced by the nation’s moderate economic growth and fall in prices of crude oil and commodities, which resulted in the stock market having a negative total shareholder returns since three years ago.
He said the decline in the market bellwether, FTSE Bursa Malaysia KLCI (FBM KLCI), of 4.7 per cent to-date had also contributed to the lower ASB returns.
“The return of 6.75 sen a unit or 6.75 per cent, with a bonus of 0.5 sen a unit can be considered as competitive compared with the stock market benchmark which is at negative 1.7 per cent and KLIBOR interest rate of 3.3 per cent a
year,” he said in a statement today.
PNB is the biggest fund management company in Malaysia with assets under management of RM260 billion, comprising unit trust funds of RM220 billion and proprietary funds of RM40 billion.
Out of the RM220 billion, ASB is the biggest unit trust scheme with total units of 144 billion.
A total of 68.5 per cent of the ASB funds are invested public listed companies on Bursa Malaysia (equities), 2.6 per cent in fixed income instruments and 28.9 per cent in cash and cash equivalents.
Its major investments include Sime Darby Bhd, Malayan Banking Bhd, UMW Holdings Bhd, Tenaga Nasional Bhd, Telekom Malaysia Bhd, Axiata Group Bhd, Maxis Bhd, Digi.Com Bhd and Petronas Chemicals Group Bhd.
Abdul Wahid said to continue generating competitive and sustainable returns for the years to come, PNB would strive to implement its strategic plan 2017-2022 which was announced on Nov 24 this year.
Among others, the plan included optimising strategic asset allocation and improving the performance of companies owned by PNB, he said, adding he would harness his over 28 years of experience in the corporate and administration
sector for PNB’s benefit. – Bernama