KAML gain positive returns

Kina Asset Management Ltd (KAML) has record an investment gain of 14.7 per cent for the year ending 31 December 2016.

KAML Chairman Sir Rabbie Namaliu said it was achieved because of its investment portfolios.  

Sir Rabbie said, the Fund recorded a valuation gain of K3.8 million resulting from the strong performance of Bank South Pacific (BSP) share price which rose by 20 per cent over the year.

BSP represented 21.9 per cent of the Fund at year end.

Dividend and interest income also contributed to the performance of the Fund with dividends received totalling K3.1 million.

The depreciation of the Kina against the Australian dollar by 4.3 per cent over the year also added to the increase in value of the Fund.

Sir Rabbie said the KAML portfolio was within its target asset allocation being 42.5 per cent invested in domestic stocks, cash and fixed income; and 57.5 per cent invested in international stocks and cash.

He further stated that in addition to BSP, other key holdings of the KAML portfolio were, Vanguard International at 11.4 per cent which returned an investment gain of 18.7 per cent, Oil Search Limited at 8.2 per cent returned 17.3 per cent and Mirvac Group at 5.4 per cent generated and investment gain.

Sir Rabbie said both of the Fund’s key investment sectors of domestic and international equities outperformed their respective benchmarks.

 “Given the Fund has 57.5 per cent of its assets invested offshore, the Fund also represents an excellent way for PNG investors to gain an exposure to offshore assets and mitigate the risk of ongoing Kina depreciation, while at the same time diversify investment to other economies in addition to PNG.

“The forthcoming year will continue to see challenges in global markets resulting from recent political outcomes in the United States which will over time impact global economies, companies and markets.”

“KAML will continue with its measured approach to investment in line with its investment strategy as opportunities arise, for the benefit of our shareholders,” Sir Rabbie said.

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Charles Yapumi