Kina records strong performance in 2016

By MARK HAIHUIE
MORE than K6 million in profit was declared by Kina Asset Management Limited (KAML) for the last financial year.
KAML chairman Sir Rabbie Namaliu announced the positive results to shareholders during the annual general meeting last Thursday in Port Moresby.
“The company performed strongly delivering a return on investment of 14.7 per cent and a net profit of K6.15 million – exceeding the result of the previous year,” Sir Rabbie said.
“The 2016 result was particularly outstanding given the backdrop for investment markets, of sluggish conditions for the global economy and a generally weak Papua New Guinea economy.  “In spite of these challenges, we were able to deliver a double digit return to you, our shareholders, and grow KAML’s net assets from K52.6 million to K57.5 million – a remarkable achievement.
“KAML’s performance was a direct result of growth in its key investment positions.
“Of our domestic investments, gains were mainly driven by our top performer Bank South Pacific which added K3.3 million in value, and Oil Search which added K692,000 to the value of the portfolio.
“Of our ASX (Australian Stock Exchange) investments, notable gains were provided by ANZ Bank with K454,000 and Mirvac Group with a gain of K414,000.
“In total, gains from domestic assets totalled K4 million and gains on offshore investments amounted to K3 million over the year.
“During 2016 the transaction activity of the portfolio was minimal as the settings we established during 2015 continued to reflect our view that markets remained uncertain with potential for periods of volatility.
“We remained concerned over the domestic economy’s performance and the potential for certain sectors to be negatively impacted as a result.”
Two resolutions were passed – to retain PricewaterhouseCoopers as the company auditors and to re-elect Sir Rabbie as the KAML chairman.