PNB confident of higher returns from new fund

BusinessTimes

PERMODALAN Nasional Bhd (PNB)'s recently launched Structured Investment Fund (SIF) could yield returns of between nine and 10 per cent a year, its chief executive said.

In May, president and group chief executive Tan Sri Hamad Kama Piah Che Othman said the fund could provide annual returns of between six and seven per cent.

PNB is confident of a higher estimate as its existing funds have reported between seven to eight per cent returns annually, Hamad said.

A total of RM2.5 billion has been taken up since the SIF was launched in May. SIF is open to individual and institutional investors at a net asset value of RM1 during the offer period, which ended on June 25th.

It is also the first time that PNB opened the fund to institutional investors, companies and non-Malaysians to invest.

"The overwhelming response we received encourages PNB to launch more of such products in the future," he said in Kuala Lumpur yesterday.

He was speaking at an event announcing winners of PNB's investment quiz.

Up to 80 per cent of the fund will be invested in structured products issued by Deutsche Bank Malaysia, which may include bonds, stocks, equity-linked and hybrid products.

The fund will also put up to half of its money in PNB REIT (real estate investment trust), which owns seven properties in Kuala Lumpur and Johor Baru worth about RM1 billion in total.

Meanwhile, PNB announced that its wholly-owned subsidiary, Amanah Saham Nasional Bhd (ASNB), is offering 200 million new units of Amanah Saham Didik (ASD) beginning yesterday.

A total of 2.2 billion units have been snapped up since ASD was launched in 2001. This is the seventh time the fund has offered new units.

ASD is a fixed price unit trust fund open to Bumiputera investors as early as six months old.

Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.

PNB offers commercial fund

TheStar

KUALA LUMPUR: Permodalan Nasional Bhd (PNB) is expanding its scope to commercial fund management with its newly launched PNB Structured Investment Fund (PNB SIF).

Chairman Tan Sri Ahmad Sarji Abdul Hamid said the fund marked the expansion of PNB's customer base from traditional individual investors to a broader market segment comprising institutions, companies, cooperatives and other fund holders.

PNB SIF is an RM3bil closed-end structured fund with a maturity period of five years. It will be transacted at a net asset value of RM1 during the initial offer period, or 45 days from the launch date.

From left: Tan Sri Ahmad Sarji Abdul Hamid, Tan Dri Nor Mohamed Yakcop and Tan Sri Hamad Kama Piah Che Othman at the fund launch.

The fund will invest mainly in PNB's real estate investment trusts (Reit), structured products and cash instruments.

Deutsche Bank (M) Bhd will issue the structured products while PNB will place its Reit, comprising seven properties in Kuala Lumpur and Johor Baru, into the fund.

The PNB properties registered healthy occupancy averaging over 93%, Sarji said at the fund launch yesterday.

Deutsche Bank, meanwhile, will provide the financial products including bonds, equities, equity-linked products and hybrid products.

“We hope this unique product will fit the criteria of prudent investors looking for exposure to the exciting and growing potential of Reit and structured products,” he added.

PNB president Tan Sri Hamad Kama Piah Che Othman said PNB Reits' prime properties – PNB Building, PNB Darby Park, PNB Damansara, Menara Tun Ismail and Wisma KPMG in Kuala Lumpur as well as Menara Pelangi, Plaza Pelangi and Pelangi Leisure Mall – were estimated to be worth almost RM1bil.

On the potential listing of PNB Reit, he said: “If the opportunity arises, we believe we've got the capital appreciation from our prime property assets.”

Earlier, Second Finance Minister Tan Sri Nor Mohamed Yakcop said the 13 Reits listed on Bursa Malaysia had a market capitalisation of more than RM5bil.

He said PNB's initiative to incorporate PNB Reits into PNB SIF reflected the fund manager's commitment to cater to investors' need for more sophisticated investment products.

Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.