Kina Asset Management Ltd Records K10.6m Profit
Kina Asset Management Limited shareholders have recorded a net profit of K10.6 million for the financial year 2019.
This is driven by a strong portfolio return of 24.1 per cent at the back of a subdued economic activity and volatile market conditions experienced during the previous year.
Chairman Sir Rabbie Namaliu in announcing the profit said the company’s net assets at year-end stood at K74.6 million, an increase of 20.8 per cent (K13.3 million), from the previous year, after payment of the 2019 half year dividend to shareholders of K1 million.
Sir Rabbie said the rising global and domestic share prices resulted in the company’s investments generating capital gains of K11.3 million with dividend and interest income contributing strongly to the KAML’s performance totalling to K4.4 million.
“Despite difficult economic conditions, the fund’s PNG investments performed very strongly,” he said.
Total return from Bank South Pacific was K4 million (28.4 per cent), comprising dividend income of K1.9 million, a dividend yield of 13.6 per cent and capital gains of K2.1 million, an increase of 14.8per cent.
BSP is the company’s largest investment, representing 22.1 per cent of total investments.
The company’s other core PNG shareholding, Kina Securities, generated total returns of 66.7per cent, after its successful acquisition of the retail and SME businesses of ANZ Bank in PNG.
The company’s Australian investments also performed strongly – shares in CSL rose 53.8per cent, Mirvac rose 42.per cent, Transurban rose 28.8 per cent, and Telstra, 25 per cent.
The company reviewed its investment strategy during the year, and the fund’s investment manager, Kina Funds Management Limited – the investment management division of the Kina Bank Group – added a number of new shareholdings to diversify the company’s investments.
Sir Rabbie said an interim dividend of 3 toea per share was paid to shareholders in October 2019.
“As a result of the ongoing challenges associated with the Covid-19 pandemic, the directors have decided not to pay a final dividend for 2019.”