The National,Tuesday March 15th, 2016
KINA Asset Management Limited (KAML) has recorded a year-end investment gain of 9 per cent with significant growth driven by its international portfolio during the final quarter of last year, chairman Sir Rabbie Namaliu says.
Sir Rabbie said KAML’s international listed equities again provided much uplift for the portfolio despite the ongoing uncertainty of global markets with a total gain of 12 per cent comprised largely of valuation gains.
Detailing KAML’s performance, he said the portfolio’s Australian listed equities generated a gain of 12.5 per cent with Transurban and CSL the best performers generating 37.6 per cent and 32 per cent total return respectively.
He said KAML’s global funds continued to perform positively generating a total return of 14.8 per cent.
Last year KAML participated in the Initial Public Offering (IPO) of Kina Securities Limited as part of its focus on investment potential in the domestic market.
KSL in turn returned 16 per cent, closing at A$1.16 (K2.65) on the initial investment after spending much of the trading season at A$1.10 (K2.51), representing a 10 per cent increase from the IPO.
Sir Rabbie said last year was a challenging year for KAML but with its performance the company remained in good stead and would continue to perform despite the current resounding uncertainty in the markets.
He said the downturn in commodity prices had placed and continues to place downward pressure on global growth and subsequently, equity markets.
Sir Rabbie said despite the resonance of bearish signals, investors should be savvy and seek opportunities when congruent with investment strategies, to take positions in anticipation of longer-term gains.
He said commodities like oil were expected to remain volatile in the interim as a result of a multitude of factors affecting supply.
He said oil was expected to revert to its historical mean over the long term and the United States dollar was largely expected to strengthen against major trading currencies.
He said as a result the kina could be seen to depreciate further from current levels.