Investment portfolio transformation in place
KUALA LUMPUR: Given the relatively flat global economic growth and low interest rate environment, Permodalan Nasional Bhd (PNB) sixyear strategic plan — Strategic Plan 2017-2022 — is aimed at transforming its investment portfolio as a key driver for future returns.
The strategic plan comprises 15 key initiatives across three pillars, namely enhancing sustainable returns, effective investment management and driving operational excellence.
The three pillars are formulated under the PNB STRIVE-15 programe.
In unveiling the plan on Thursday, group chairman Tan Sri Abdul Wahid Omar said PNB sees a challenging future ahead exacerbated by the negative trend of the FTSE Bursa Malaysia KLCI (FBM KLCI) for the past three years, due to the generally weak total shareholder return of large-cap Malaysian corporates.
Under the first strategic pillar, the Malaysia’s largest fund-management company had identified five initiatives to transform investment for future returns
This includes optimising strategic asset allocation, improving performance in domestic public equity investments as well as adding in allocation in private investments and fixed-income space and rationalising and enhancing its property investments and diversifying into global assets.
Under the second strategic pillar, PNB will continue to build upon its robust investment process to ensure more efficient portfolio oversight and achieve faster asset turnaround via monetisation.
Third strategic pillar as outlined in PNB’s plan is to drive operational excellence and deliver enhanced performance that would be achieved through sound governance practices, maintain unit trust industry leadership as well as through energised and high-performing human capital, transform information technology and practise efficient capital and liquidity management.
PNB will also cultivate a pro-active risk culture and deliver on its social objectives, such as building 5,000 affordable homes and develop 1,000 Bumiputera chartered accountants over the next five years.