KAML reports K6mil profit


KINA Asset Management Ltd (KAML) recorded a net profit of K6 million for 2021, according to chairman Sir Rabbie Namaliu.
Sir Rabbie said KAML’s net profit was driven by an investment return of 8.3 per cent with share markets in most countries rising in response to an improving outlook for the global economy.
He said unrealised capital gains on KAML’s shareholdings for the year totalled K6 million before the impact of foreign exchange movements.
The 74-year-old noted that some of the fund’s major Australian holdings reported double-digit share price increases: Sonic Healthcare (45 per cent), Telstra (40.3 per cent), Sydney Airport (35.4 per cent), and ResMed (31.4 per cent).
KAML’s international funds, the BlackRock iShares International Wholesale Index Fund, and the Vanguard International Share Index Fund, returned 22.2 per cent and 20.6 per cent respectively.
Sir Rabbie said partially offsetting these gains were foreign currency losses of K3.3 million in relation to the investments, caused by a significant appreciation in the value of the kina against the Australian dollar during the year.
Dividend and interest income contributed strongly to the company’s earnings, totalling K4.5 million.
Sir Rabbie said the fund’s core domestic shareholding, BSP Financial group, which comprised 16.9 per cent of the fund’s investments at year-end, was also the largest contributor to dividend income, at K1.7 million.
The fund’s other domestic holdings, Credit Corporation and Kina Securities, each paid dividends of K500,000.
Dividend income from the fund’s Australian equity holdings totalled K1 million, and from the global equity funds, Vanguard and BlackRock iShares, totaled K600,000. The total value of the fund increased by K1.8 million during the year.
The share price of 99 toea per share at Dec 31, 2021, represented a substantial discount to the net tangible asset backing of K1.61 per share, reflecting the lack of liquidity on the PNG stock exchange (PNGX). During the year, a total of 621,586 shares of KAML were traded at an average price of 99t per share. Commenting on the Fund’s asset allocation, Sir Rabbie said that at year-end, 31.0 per cent of the fund was invested in domestic stocks, cash and fixed income; and 69 per cent invested in international stocks and cash. He said that key domestic portfolio holdings as a percentage of total fund at Dec 31 were: BSP at 16.9 per cent, Kina Securities at 5.5 per cent, Credit Corp at 4.5 per cent, and City Pharmacy 0.8 per cent.