KAML posts K10.5mil net profit
KINA Asset Management Ltd (KAML) reported a strong uplift in net profit for the half-year ending June 30, 2019.
KAML chairman Sir Rabbie Namaliu, pictured, said the half-year net profit of K10.5 million compared favourably with the previous year’s result.
“The half-year to June 30 has delivered strong investment performance for KAML shareholders, with the fund generating an investment return of 17.9 per cent,” he said.
Sir Rabbie said the result was largely driven by rebounding global share markets, which resulted in unrealised gains of K8.1 million.
In Australia, main contributors included Mirvac Group (MGR) up 39.7 per cent, Telstra Corporation (TLS) up 35.1 per cent, Transurban Group (TCL) up 26.5 per cent, and CSL Ltd (CSL) up 16.1 per cent.
Internationally, the BlackRock iShares International Wholesale Index Fund was up 17.4 per cent and in PNG, Kina Securities (KSL) was up 36.1 per cent, Credit Corporation (CCP) up 13.9 per cent, and Bank South Pacific (BSP) up 7.8 per cent over the review period.
“K2.9 million came from strong dividend yields and interest income,” Sir Rabbie said.
Detailing the investment strategy, Sir Rabbie said asset allocation on June 30 was 40.7 per cent invested in domestic stocks, cash and fixed income and 59.3 per cent invested with international stocks and cash.
“The fund’s key investment sectors of domestic and international equities outperformed their respective benchmarks over the half-year,” Sir Rabbie said.
He said key portfolio holdings were BSP at 21.7 per cent of the fund, Vanguard at 11.4 per cent, MGR at 6.6 per cent, CSL at 6.5 per cent, TLS and TCL at 5.9 per cent and 5 per cent respectively.
Sir Rabbie said the first six months of the financial year started well, as global equity markets rallied strongly, largely reflecting a change in investor’s risk appetite and expectations that central banks globally would maintain accommodative monetary policy settings for longer than previously expected.