PNB un­veils strate­gic plan to boost its AUM

> As­set man­ager tar­gets RM350b by 2022, to con­sider in­creas­ing in­vest­ments abroad af­ter ring­git strength­ens

The Sun (Malaysia) - - SPEAK UP - BY EE ANN NEE

KUALA LUMPUR: Per­modalan Na­sional Bhd (PNB) yes­ter­day an­nounced its Strate­gic Plan 2017-2022 to ad­dress chal­lenges in this pe­riod of global un­cer­tainty, and said it will con­sider in­creas­ing its in­vest­ments abroad when the ring­git strength­ens.

Cur­rently, PNB chair­man Tan Sri Ab­dul Wahid Omar ( pix) said, only 2% of its in­vest­ments are over­seas.

“This is not the right time to in­vest abroad. At the op­por­tune time, af­ter the ring­git strength­ens, we may con­sider in­creas­ing our al­lo­ca­tions abroad,” he told a me­dia brief­ing yes­ter­day.

The brief­ing was to an­nounce a strate­gic plan to in­crease its as­sets un­der man­age­ment (AUM) to RM350 bil­lion by 2022. Its AUM cur­rently stands at RM260 bil­lion.

PNB has in­vest­ments in six prop­er­ties in Lon­don and one in Aus­tralia, which was in­vested at a time when the ring­git was stronger.

“In terms of per­cent­age, it’s rel­a­tively small but it’s a size­able in­vest­ment so we’re com­fort­able with that port­fo­lio,” said PNB pres­i­dent and CEO Datuk Ab­dul Rah­man Ah­mad.

Cur­rently, 98% of PNB’s in­vest­ments are in Malaysia and the coun­try re­mains its core in­vest­ment des­ti­na­tion.

The global mar­ket en­vi­ron­ment re­mains dif­fi­cult with growth fore­cast to re­main flat, cou­pled with the low in­ter­est rate en­vi­ron­ment, ex­ac­er­bated by lack­lus­tre do­mes­tic eq­uity per­for­mance, as the FBM KLCI, Bursa Malaysia’s key in­dex, has been on a neg­a­tive trend for the past three years. “The im­me­di­ate is­sue is to take ad­van­tage of the his­tor­i­cal low po­si­tion that we’re in,” Rah­man said.

About 20% of its port­fo­lio is in cash (RM50 bil­lion), which will give PNB the flex­i­bil­ity to in­vest in stocks and other in­vest­ments at the right time.

PNB’s net in­come is es­ti­mated at RM15.18 bil­lion in 2016, com­pared with RM15.78 bil­lion in 2015.

PNB’s Strate­gic Plan 20172022 com­prises 15 key ini­tia­tives across three pil­lars – en­hanc­ing sus­tain­able re­turns, ef­fec­tive in­vest­ment man­age­ment and driv­ing op­er­a­tional ex­cel­lence.

“We be­lieve we’re on track for 2016, and for 2017 and beyond, our strate­gies will en­able us to achieve the tar­get,” said Wahid.

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