It had announced a 6.9% increase in 2018.
While warning of a weakening market for 2020, PNB group chairman Zeti Aziz said for 2019 the company recorded RM10.7 billion in net income, which contributed to a 5.4 sen payout per unit for fixed price funds.
This was despite a 6% negative return in the FTSE Bursa Malaysia KLCI (FBM KLCI), she said.
“Since our inception 42 years ago, we have distributed RM200 billion in total payout.
“This is in line with our central mandate to maintain sustainable returns while paying out yields that are realistic, and which reflect the market conditions,” she said during a media briefing on PNB’s Annual Report 2019 and Strategic Plan 2020-2022.
In 2019, she added, PNB, one of the largest fund management companies in Malaysia, gained more ground in its portfolio diversification and expanded investments into other asset classes including international financial markets and liquidity management.
This saw international exposure grow last year to 8.5% from 3.5% in 2018. Its international public equity holdings generated the highest returns, contributing RM1.7 billion or 11.6% to its overall gross income in 2019.
“This was despite its small exposure in the total portfolio,” she said.
For 2020, though, she said PNB would be entering an even more demanding environment given the global spread of Covid-19.
Amid slowing demand and supply disruptions, she said, the oil market has seen plummeting prices with Brent crude oil slumping by 61.7%, positing a heavy impact on oil companies and oil-producing countries.
“The Malaysian equity market has not been spared from these shocks,” she said, adding that the KLCI had declined by 11.4% year-to-date, almost twice the 6% drop in 2019.
The former Bank Negara governor added that global economic recovery would depend on containment efforts for the virus, policy measures and the introduction of a vaccine.
PNB also announced a Focus 4 strategy to look into sustainable growth and unlock value with a focus on diversification, value creation, risk management and organisational transformation.
Group CEO Jalil Rasheed said for this year, PNB aims to have various investment styles that can weather different market conditions rather than employ a single strategy.
“This will see us increasing our global exposure to 30% within three years,” he added.
He said PNB would also engage external fund managers who are world leaders in their specific areas to manage the funds.
“But the risk that could delay our deployment target is currency, where our receipts are in ringgit. Hence any deployment will be made carefully taking into account the strength or weakness of the ringgit.”
PNB’s portfolio covers strategic investments in Malaysia’s leading corporates, global equities, private investments and real estate.
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