KAML posts K3.3mil profit


KINA Asset Management Ltd (KAML) recorded a net profit of K3.3 million for the 2020 financial year despite it being a challenging year for the company’s shareholders, chairman Sir Rabbie Namaliu says.
Sir Rabbie told the company’s annual general meeting that the onset of Covid-19 global pandemic caused the largest fall in economic activity in many countries since the great depression, and in the first quarter, global share markets recorded their largest falls since the global financial crisis.
“Given the diversity of its portfolio, the company performed well in these difficult conditions, recording a net profit of K3.3 million for the full year, driven by a respectable portfolio return of 6.2 per cent,” he said.
Sir Rabbie said at the end of the year the company’s net assets stood at K78.3 million, an increase of 5.5 per cent from the previous year, before payment of the full year dividend of 4t per share.
“Capital losses of K5.2million were reported from falls in the prices of most of the Fund’s shareholdings.
Among the few individual companies which reported gains were the Fund’s PNG investments in BSP, which rose by K300,000 and Credit Corp by K200,000.
“Dividend and interest income of K3.7million was reported for the year.
“Again, the Fund’s PNG investments were key contributors, with BSP paying dividends of K1.6 million, Credit Corp K0.3 million, and Kina Securities K0.2 million.”
Sir Rabbie said BSP remained the company’s largest investment, representing 19.3 per cent of total investments.
He said during the year, the company increased its exposure to another core PNG shareholding, Kina Securities.
“Kina Securities is continuing its growth trajectory by announcing its intention to acquire Westpac PNG, after the successful acquisition of the retail and SME businesses of ANZ Bank in PNG in 2019.”
Following the company’s review of its investment strategy in 2019, the fund’s investment manager, Kina Funds Management Limited added a number of new shareholdings to diversify the company’s investments.
“These new investments included New Zealand dairy products company A2Milk, Queensland-based financial services group Suncorp, Sydney Airport Corporation, and international health care providers Res Med and Sonic Health care.”