PNB taking opportunistic approach to get high returns
KUALA LUMPUR: Permodalan Nasional Bhd (PNB) is taking an opportunistic approach in determining the direction of its international investments to ensure high returns.
Chairman Tan Sri Abdul Wahid Omar said the group was waiting for the right market, including the United States, Europe, Asean and North Asia, as well as right timing to grow its international investments, which were relatively low.
“At this point, 98 per cent of our investments are in Malaysia. Obviously, in the longer term, we do want the two 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 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,” Wahid told Bernama news channel’s Biztalk programme recently.
In terms of potential international markets for both equities and real estate, he said the investment destination would be towards more developed and stable markets that PNB was more familiar with.
On the RM500 million fund for the Indian community announced by Prime Minister Datuk Seri Najib Razak in the 2018 Budget, he said PNB was happy to work with the special economic department 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. Obviously, we are hopeful that it (the fund) can be implemented in January next year,” he added.
On the plan to reduce assets under management in cash to 15 per cent, Wahid said there was no timeline.
“This is part of our effort to optimise our asset allocations and part of our objective to enhance our returns sustainably. Since August, 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