PNB taking opportunistic approach investments
KUALA LUMPUR: Permodalan Nasional Bhd (PNB) is taking an opportunistic approach in determining the direction of its international investments to ensure the depositors get high returns.
Its Chairman, Tan Sri Abdul Wahid Omar, said the group is currently studying the right market, including the United States, Europe, ASEAN and North Asia, as well as right timing to grow its international investments, which are relatively low currently.
“At this point, 98 per cent of our investments are in Malaysia. Obviously, in the longer term, we do want the 2.0 per cent international investment to be at a higher level, but we are taking an opportunistic approach, it must be subject to the right investment opportunity and at the right time.
“We are also watching the exchange rate very carefully in the sense that we want to invest at a time when the ringgit is actually strong.
“If you invest when the ringgit is weak, when it strengthens later your return will therefore be lower. That is something that we want to avoid,” Abdul Wahid told Bernama when appearing as a guest on Bernama News Channel’s Biztalk programme recently.
In terms of potential international market for both equities and real estate, he said the investment destination would be in more developed and stable markets where PNB was more familiar with and comfortable to invest in.
Meanwhile, on the RM500 million fund for the Indian community announced by the Prime Minister Datuk Seri Najib Tun Razak in the 2018 Budget, he said PNB was happy to work with the special economic department for the Indian community to kick off the fund.
“In terms of the actual details (on the fund), it will be announced by the Socio-Economic Development Plan of the Indian Community (Sedic). Obviously, we are hopeful that it (the fund) can be implemented in January next year,” he added.
At this point, 98 per cent of our investments are in Malaysia. Obviously, in the longer term, we do want the 2.0 per cent international investment to be at a higher level, but we are taking an opportunistic approach, it must be subject to the right investment opportunity and at the right time. Tan Sri Abdul Wahid Omar, PNB chairman
On the plan to reduce assets under management in cash to 15 per cent, Abdul Wahid said there was no timeline set for when the group would achieve that level as the reduction of cash very much depended on the availability of investment opportunities in all the other asset classes.
“This (reducing cash) is part of our effort to optimise our asset allocations and part of our objective to enhance our returns sustainably. Since August (this year) to-date, we have been reducing it (cash) to 19 per cent from 20 per cent.
“It is a gradual process and this fund has actually been deployed more into fixed income instruments, private investments, as well as real estate,” he said. — Bernama