Investment company records 24.1pc return


KINA Asset Management Ltd (KAML) has recorded an investment return of 24.1 per cent for the year ending Dec 31, 2019.
According to the investment company, total value of the fund increased by K13.2 million, after payment of the 2019 half-year dividends of K1 million.
KAML chairman Sir Rabbie Namaliu said despite impacts on global trade arising from ongoing US/China trade and technology disputes, and the Brexit impasse, global share markets performed strongly during the year.
Sir Rabbie said rising international share prices resulted in capital gains for the fund of K11.3 million.
He said despite challenging domestic economic conditions, the fund’s PNG investments also performed strongly.
Bank South Pacific, which comprised 22.1 per cent of the fund’s investments at Dec 31, 2019, generated total return of 28.4 per cent.
Sir Rabbie said the fund’s other core domestic shareholders, Kina Securities and Credit Corporation, recorded total returns of 66.7 per cent and 32.2 per cent respectively.
There was little movement in the kina against the Australian dollar during the year, and a nominal currency translation gain of K0.3 million was recorded.
Commenting on the fund’s asset allocation, Sir Rabbie said at year-end, 40.2 per cent of the fund was invested in domestic stocks, cash and fixed income; and 59.8 per cent invested in international stocks and cash.
Sir Rabbie said the company’s domestic and international investments outperformed their respective benchmarks and the fund remained well placed to add to existing holdings, or exploit new opportunities as they arose this year.
He said despite the easing of trade tensions between US and China and a generally positive start to this year, the effects of the coronavirus (Covid-19) outbreak on global economy were only beginning.