KUALA LUMPUR, Dec 21 — Permodalan Nasional Bhd (PNB) expects the growth of funds under its management in 2019 will be range-bound and moderate, similar to 2018.
PNB Group Chairman Tan Sri Zeti Akhtar Aziz said following the uncertainties and challenging economic environment, which included trade tension, shifts in macroeconomic policies in major economies and other geopolitical developments, PNB would undertake a diversification strategy using a more robust risk management strategy to ensure it would not enter into risks that would affect returns.
“We will oversee the investment activities in all portfolios and look at the individual investments made, the risks for that industry, its track record, and so on as we enter into investment activities.
“PNB also held excessively high percentage of cash and there are many instruments at our disposal to manage the liquidity more effectively which can generate a greater rate of returns,” she told reporters after announcing the income distribution for Amanah Saham Bumiputera and Amanah Saham Nasional funds here today.
Zeti said PNB had also relocated more cash into fixed income to further diversify its portfolio.
“So when one market is lower performing, another market can compensate. Diversification will be across the board, including in other markets like real estate, financial and other real sectors. We are also looking at investments that has recurring income,” she said.
As at November 2018, PNB’s cash holdings were lower at 16.9 per cent compared with 17.5 per cent from November last year, while fixed income holdings increased to 6.6 per cent from 5.8 per cent previously.
During the announcement, Zeti also outlined four other key strategies for PNB in 2019, including undertaking a mid-term review of its strategic plan on the areas of strategic asset allocation, enterprise risk management and organisational transformation.
“We will also continue with our value creation plan for strategic companies and further engage with core companies to improve their performance, enrich unit holders’ experience through new digital offerings and intensify efforts to promote financial literacy and educate unit holders about investment risks and returns,” she added. — Bernama