Ekuinas funds perform well in financial year 2016
KUALA LUMPUR: Ekuiti Nasional Bhd’s (Ekuinas) Ekuinas Direct (Tranche I) and the Ekuinas Direct ( Tranche II) funds recorded ,gross portfolio returns of RM466.4 million and RM331.6 million respectively, for the financial year ended Dec 31, 2016.
The growth in the Ekuinas Direct (Tranche I) fund represented a gross annualised internal rate of return (IRR) of 13.1 per cent and a net annualised IRR of 9.4 per cent, exceeding the long- term minimum targeted annualised return of 12 per cent.
Meanwhile, the return for the Ekuinas Direct (Tranche II) translated to a gross annualised IRR of 18.1 per cent and a net annualised IRR of 12.7 per cent.
“We have done reasonably well, despite the challenging economic environment last year. For the seventh year running, Ekuinas has succeeded in maintaining its IRR above the minimum target of 12 per cent per annum,” chairman Raja Tan Sri Arshad Raja Tun Uda told a press conference yesterday.
Also present were Minister in the Prime Minister’s Department Datuk Seri Abdul Rahman Dahlan and Ekuinas chief executive officer Syed Yasir Arafat Syed Abd Kadir.
Ekuinas undertook seven direct and outsourced investments with a total commitment capital of RM172.6 million in 2016.
The total cumulative committed investments undertaken by Ekuinas amounted to 53 valued at nearly RM3.0 billion, which together with private capital, facilitated a total capital deployment of RM3.6 billion that positively impacted the economy, said Raja Arshad.
He said Ekuinas had committed RM172.6 million in seven direct and outsourced investments, including two direct investments with a total committed capital of RM123.2 million.
In 2016, Ekuinas exited its maiden investment in Alliance Cosmetics Group, which generated proceeds of RM61.8 million with an IRR of 9.0 per cent and money multiple of 1.5 times the capital invested.
Meanwhile, Syed Yasir Arafat said Ekuinas’ existing portfolio companies collectively generated more than RM1.6 billion in revenue and RM392.3 million in warnings before interest, tax, depreciation and amortisation.
In terms of social objectives, Ekuinas had successfully increased Bumiputera equity value by RM3.9 billion or 1.4 times the total capital invested, he added.
Meanwhile, total shareholders’ value for all portfolio companies increased by RM5.6 billion, equivalent to 2.0 times the invested capital.
Through its portfolio, Ekuinas provided jobs to 498 managers and 16,038 employees at end-2016, out of which 40.4 per cent and 60.3 per cent were Bumiputeras, respectively.
“This represents a healthy increase of 16.9 per cent and 29.7 per cent for Bumiputera managers and employees, respectively, since Ekuinas’ entry in 2009,” said Syed Yasir Arafat. — Bernama