STELLAR PERFORMANCE
Fund manager’s financial performance remains strong despite rather flat equity market
PERMODALAN Nasional Bhd’s net income rose 8.8 per cent to RM10.05 billion in the third quarter, buoyed by the country’s strong economic growth and capital market conditions. It has announced an income distribution of six sen per unit for Amanah Saham 1Malaysia.
PERMODALAN Nasional Bhd’s (PNB) net income rose 8.8 per cent to RM10.05 billion in the third quarter ended August 31 this year, buoyed by faster growth in Malaysia’s economy.
Its asset under management edged up 4.2 per cent to RM268.6 billion as the country’s largest fund manager also benefited from a better capital market condition.
PNB said the local economy grew at a strong 5.8 per cent in the second quarter, the fastest pace since the first quarter of 2015, from 5.6 per cent in the preceding quarter.
Bursa Malaysia’s key index gained 116 points, or 7.1 per cent, year-to-date to close at 1,758 points, while the ringgit vis-a-vis the US dollar edged up six per cent to RM4.23 as at Thursday.
“We are pleased that we are still able to maintain PNB’s strong financial performance year-todate amid an environment of positive Malaysian economic growth but a rather flat equity market in the third quarter,” said chairman Tan Sri Abdul Wahid Omar at a briefing on PNB’s interim results, here, yesterday.
The group also announced an income distribution of six sen per unit for Amanah Saham 1Malaysia involving a total distribution of RM724.1 million. This will benefit more than 390,000 account holders who own 12 billion units in the fund.
Wholly-owned Amanah Saham Nasional Bhd’s unit trust funds now have more than 13 million accounts with almost 217 billion units in circulation.
PNB also said several major corporate exercises were expected to be completed by the yearend, in line with the PNB STRIVE15 Strategic Plan.
On the property business, the group said it was exploring the prospect of selling two properties in London.
The sales of Milton & Shire House and 90 High Holborn would be in line with its strategy to prudently monetise its investments as they reach maturity, and reinvest the proceeds in other investments, it said in a statement.
Refuting allegations that it was forced to sell the two major properties, PNB said it might secure lucrative gains at current market prices, after owning the assets for more than five years.
It stood to realise more than 20 per cent per year in terms of internal rate of returns due to capital appreciation, effective financing structure and foreign exchange gains, the group added.
“The acquisitions of these two properties were completed in the first quarter of 2012, and not 2014 as alleged. They were partly funded by debt of less than £370 million (RM2.08 billion) at a highly attractive interest rate of below two per cent.”
PNB added that the potential divestment is also to take advantage of continuing strong demand for United Kingdom properties despite concerns over Brexit. This was reflected by more than £8 billion worth of properties already being transacted in the first half of the year,