Kina makes K1.22m profit in six months

Business

Kina Asset Management Limited (KAML) has announced a half-year net profit after tax of K1.22 million.
The main contribution to portfolio return came from valuation gains of K1.4 million, chairman Sir Rabbie Namaliu said.
“The half year results have delivered a satisfactory investment performance for shareholders, with the KAM performance generating an investment return of 3.08 per cent, despite adverse currency movements negatively affecting the portfolio,” he said.
Detailing the portfolio investment strategy, Sir Rabbie said that asset allocation at the end of the reporting period was 40.75 per cent invested in domestic stocks, cash and fixed income and 59.25 per cent invested with international stocks and cash.
“While the fund’s A$ denominated portfolio produced lackluster returns due to adverse currency effects, KAM’s global ex-Australia Exchange traded funds significantly outperformed their Benchmark,” Sir Rabbie said.
“Similarly, the domestic equities and fixed interest significantly outperformed their respective benchmarks in the reporting period.”
The first six months of the financial year posed some challenges to the portfolio, with global markets remaining volatile as a result of continued trade and geo-political unrest and the risk of rising interest rates.
“Domestically, the economy remains under pressure, however, KAM’s investments are largely in sectors not exposed to domestic consumption,” Sir Rabbie said.
“We remain cautious for the balance of the year as markets are generally reflecting high valuations and global geo-political risks remain a threat to markets.
“While KAM retains a solid liquidity position, we remain cautious of some headwinds given our view that the kina will remain under pressure as the foreign exchange market continues to clear the backlog of import orders in the next six to 12 months.
“KAM has declared an interim dividend of 2 toea per share, as a reflection of our continued confidence in KAM’s investment performance and as a way to reward our shareholders.
“KAM has a long-term track record of delivering strong growth in the value of its investments and ongoing income for its shareholders.”