PNB DIVERSIFICATION PAYS OFF
International investments make up 12pc of portfolio, contributing 25.5pc to gross income
PERMODALAN Nasional Bhd’s (PNB) diversification push has gathered momentum, with international investments forming 12 per cent of its portfolio in the financial year ended Dec 31 last year, up from 8.5 per cent in 2019.
PNB president and group chief executive officer Ahmad Zulqarnain Onn said this generated a larger contribution of 25.5 per cent to the group’s gross income compared with 11.6 per cent in financial year 2019.
He said 8.7 per cent of its global assets comprised public equity investments last year, from 5.9 per cent previously.
In terms of income composition, global equities’ contribution increased 18 times between 2017 and last year, from RM200 million to RM3.7 billion.
“There was a significant payoff from this diversification arising from the relatively better performance of these investments,” he said after a briefing on PNB’s financial performance yesterday.
Zulqarnain said domestically, PNB had also rebalanced its portfolio by monetising mature assets.
These included the divestment of Menara MIDF in Jalan Raja Chulan, here, to reduce its exposure to the commercial office segment.
“It also divested its entire 23 per cent minority holding in Unilever Malaysia Holdings Sdn Bhd. This enabled PNB to unlock its investment value to recycle capital into new investments.”
PNB aims to gradually expand its new investments over the long term in potential sectors such as renewable energy, fifth generation mobile technology, logistics and data centres.
Zulqarnain said the group would also continue with buyouts and possibly domestic consumer discretionary sectors under the private equity portfolio.
He said for this year, PNB would remain focused on diversification and value creation as well as accelerating its digital transformation.
“More features will be added to the myASNB mobile application, such as goal-based investing and electronic know-your-customer. Unitholders’ online experience will also be enhanced through an improved Minggu Saham Digital, and new additional digital touchpoints for a wider reach,” he said.