PNB to increase investments in private equity

KUALA LUMPUR: Permodalan Nasional Bhd (PNB), the largest investment manager in the country handling more than RM255 billion in funds, will see an increase of investments in private equity under a newly minted management.
“PNB always makes investments from time to time in capital markets, both equity and debt capital market, as well as private equity. Investments in private equity may be less in the past and maybe in the future we will make new plans to increase investments in private equity. However, any investments announced before this will continue,” group chairman Tan Sri Abdul Wahid Omar told reporters at a briefing yesterday, adding that PNB’s concept and direction will be maintained under the new management.
He said PNB, via its entity PNB Equity Resource Corp, is already invested in many private companies and some of these companies have been very successful, including Perodua.
“We would like to see other opportunities being created and I think this is something which the management team would have to evaluate further,” he added.
However, it has not targeted any specific companies or segments yet.
Commenting on the changes in PNB’s management, Abdul Wahid said PNB’s concept will be maintained despite the many challenges that the new team expects to face and hopes to improve PNB’s performance.
Abdul Wahid joined PNB as chairman on Aug 1, 2016, replacing Tun Ahmad Sarji Abdul Hamid. PNB will also have a new president and group CEO in Datuk Abdul Rahman Ahmad effective Oct 1, 2016, replacing Tan Sri Hamad Kama Piah who is retiring.
Yesterday, PNB’s wholly-owned subsidiary Amanah Saham Nasional Bhd (ASNB) announced an income distribution of 6.10 sen per unit for Amanah Saham 1Malaysia (AS 1Malaysia) for the financial year ending Sept 30, 2016 (FY16). The income distribution will involve a total payment of RM700.63 million to more than 393,000 unit holders who subscribed to 11.486 billion units of AS 1Malaysia.
Abdul Wahid said the fund’s performance for FY16 was affected by uncertain market conditions. The income distribution for the fund was 6.40 sen per unit last year.
“During FY16, the FBM KLCI gained 3.1% up to Sept 23, from 1,621.04 points on Sept 30, 2015, to 1,670.99 points. However, the FBM KLCI’s average daily trade for FY16 was lower than FY15, recording a 5% drop from 2015’s average of 1,757.12 points to 1,668.39 points this year,” he said.
Up till Sept 23, 2016, AS 1Malaysia recorded a gross income of RM777.63 million. Profit from the sale of shares contributed RM344.87 million or 44.4% while dividend income from investee companies contributed RM321.27 million or 41.3% from the gross income. The remaining RM111.49 million or 14.3% is derived from investments in short- term instruments and other income.
The income distribution will be reinvested in additional units and will be automatically credited into unit holders’ accounts on Oct 1.