KAML posts net profit

 KINA Asset Management Ltd (KAML) posted K8.1 million net profit last year and delivered 18% increase in its investment portfolio.

The investment portfolio jumped by K7.7 million to K50.3 million last year,  from K42.7 million in 2012. 

Chairman Sir Rabbie Namaliu said the record increase in portfolio value was attributed to the listed equities and offshore assets gains and dividends received.

“This year’s performance reflects long-term investment strategy embarked by KAML when it was launched six years ago to provide a vehicle for PNG-based investors to benefit from domestic and international growth opportunities,“ he said.

Sir Rabbie said KAML recorded an investment gain of K9.6 million for the 12 months to Dec 31, 2013, inclusive of exchange rate, representing a return of 21%.

He said the annual performance of domestic-listed equities, together with international-listed equities and Global ex ASX investments, exceeded their respected benchmarks set by KAML board.

Sir Rabbie noted that KAML investment strategy saw domestic equities KSi Home Index and S&P Australian Stock Exchange 50 receiving 40-50% target range of total investment.

International equities, which included MSCI All Country Asia ex Japan and MSCI world ex Australia, had a target range of 50-60%, during investment period.

In the fourth quarter, global economy continued its recovery, with European countries showing strong growth, while emerging economies remained dampened.

Sir Rabbie said while the US government continued to reduce its asset purchases, US growth continued to accelerate towards end of quarter following strong activities  in the manufacturing and service sectors.

“In the fourth quarter, economic growth in China appeared to have stabilised at 7.9%, while trade surplus appeared to outpace growth in private consumption, he said..

“Inflation rate receded to 3.5% (from 4% in previous quarter) as tightened monetary policy and repressed domestic consumption demand kept inflationary expectations to its low.”

In Australia, Sir Rabbie said the fourth quarter saw business investment appear to have risen after declining in previous two quarters.