Kina Asset Management Limited has announced a healthy growth during the company’s annual general meeting yesterday.
Speaking during the AGM, company chairman Sir Rabbie Namalie says;
“The investment portfolio increased K7.64 million or a record 18% from K42.35 million to K49.99 million as at the end of December 2013.’’
“The increase in the portfolio value was attributed to improving sentiment in global equities market, satisfactory dividend yields and your company’s forward planning to take advantage of very accommodative foreign exchange movements.
“Through our investment committee at Kina Funds Management, we have had a resoundingly positive performance with our international investments, with some high returns as the world economy continues to recover” Namaliu says
During the year, KAML effectively implemented changes to our geographical allocation in line with our outlook for sectors of prospective growth. KAML moved its target exposure of international and domestic to a neutral range of 50-60% international versus a 40-50% domestic allocation.
This reweighting of the portfolio allowed KAML to take advantage of continued global recovery over the period in addition to capitalising on the favorable currency movements.
Sir Rabbie says; “Our performance for the year surpassed our benchmarks, with our domestic equities returning 5.60% while the local equities market fell 1.90% through 2013. We are achieving this through our long standing strategy of perpetually monitoring and re-evaluating each position as well as holding domestic equities that we felt had attractive prospective returns.
“We increased our strategic overweight position in Bank of South Pacific to benefit from what we felt were very attractive yields. We also decreased our exposure to Credit Corporation which was historically a large exposure within the portfolio to take advantage of the 13.40% gain and the available liquidity through the year”
Namaliu says that the company’s international equities portfolio, with their preference for banking and financial assets, as opposed to the mining and energy sectors saw the Australian equities return 16.90% in line with the ASX/S&P 50 benchmark which returned 16.80% before exchange rate effect.
“In other global equities, our major contributor to performance was our significant holdings in Vanguard International Shares Index Fund which returned 57.20% before exchange rate effect, beating its respective benchmark by 9% through the year.
“Our Ishare Asia ex Japan performed slightly below its respective bench mark, returning 1% before exchange rate effect, whilst the MSCI All Country Asia ex Japan benchmark returned 2.80%.
“Through our effective implementation of our rebalancing strategy we were able to benefit not only from capital appreciation of our investments, but also recognize gains from remitting funds back to PGK at very accommodative exchange rates as we saw the PGK depreciate 18.0% and 2.9% against the USD and AUD respectively” Namaliu says