KAML: Strategy works

Business, Normal

The National, Monday July 1st, 2013


KINA Asset Management Ltd (KAML) has generated an investment gain of K3.19 million, or 7.2% return, for the quarter ending March this year, Chairman Sir Rabbie Namaliu told shareholders last Friday.

At the company’s annual meeting in Port Moresby, Sir Rabbie said KAML had a strong return to profitability, despite globally trying economic conditions.

“The investment gain of K3.19 million is slightly more than the same period in 2012, when we had an investment gain of K2.4 million or 6.2% investment gain.

“Last year, KAML was able to generate an investment gain of K6.18 million for the year ending Dec 31, representing a return of 14.85%.

“This equates to earnings of 10 toea per share … the year in review has been sound, with the investment manager adopting positive strategies in trading and investment.

“Our asset allocation strategy includes investing into both regional and global markets and has been the driving force in securing the returns for the shareholders last year.

“During 2012, we resolved to increase our target allocations to Papua New Guinea from 30% to a target geographical allocation of 40-50% domestic investments. 

“We were able to surpass the domestic benchmark, returning a positive 9.80% across the domestic portfolio as the market index fell some 9.90% through the year.”

Chief executive and executive director Syd Yates said: “Last year’s performance is in line with the markets in which funds were invested.”

Major contributors to the international portfolio were significant holdings in ANZ Bank returning 42.0% and Westpac Bank returning 41.1%, including domestic contributors such as  Credit Corporation Ltd returning 14.4% and Bank of South Pacific returning 16.4%.

In line with KAML’s strong performance last year, a dividend of K0.40 per share has been declared by the company’s board of directors.

Shareholders were also given the opportunity to participate in the company’s dividend reinvestment plan.

Sir Rabbie’s tenure as chairman on rotation expired and was re-elected chairman by an overwhelming majority.