Malaysia: PMB to miss AUM target; ValueCap arranges financing

Image of PMB Investment's website.

Two investment firms have made the news over the past two days, as PMB Investment relayed a likely miss on its 2015 asset under management target, and ValueCap straightens out its financing arrangements to execute its mandate to boost the local equities market.

PMB Investment to miss 2015 AUM target, cuts 2016 target as well

PMB Investment Bhd has said it will miss its MYR1.4 billion target for assets under management (AUM) this year citing unfavourable market conditions.

A member of government-linked investment group Pelaburan Mara Bhd, the investment firm has at November 30, 2015, only achieved AUM of MYR1.2 billion, with 13 funds.

PMB Investment chief executive officer Ameer Ali Mohamed told local reporters on Thursday that the outlook for 2016 remains challenging and has cut its MYR2 billion target for AUM set in September to MYR1.6 billion.

“We have to be realistic on what’s [been] happening in the markets in the last 18 months. Investors are shying away from the market [and] for that reason, we are not able to achieve our target,” he told a press conference to announce PMB Investment’s top performing unit trust funds.

The fund management house is optimistic it can achieve its 2016 target for AUM by maintaining good discipline and complete its research before investing in a stock.

“We believe that if the overall market is down, there will be 20 to 25 per cent [of] stocks which will actually go up,” Ameer added.

Over the next three months, PMB will invest in stocks that are benefiting from the weakening ringgit and low commodity prices, Ameer said.

Ameer said PMB Investment will make MYR400 million worth of investments next year, comprising corporate investments (MYR200 million to MYR300 million) and equities.

“We will continue to invest in the local equities market and (the investment composition) may up to 70 to 95 per cent of our AUM,” he said. The firm is also considering investing overseas.

ValueCap’s financing arrangements sorted out

ValueCap Sdn Bhd has sorted out the funding arrangements with its shareholders, according to Minister in the Prime Minister’s Department Abdul Wahid Omar.

He said the state-owned investment fund, which was tasked with MYR20 billion ($4.7 billion) to shore up the local stock market, is in the midst of finalising the details with its three shareholders namely Khazanah Nasional Bhd, Kumpulan Wang Persaraan (Diperbadankan) (KWAP) and Permodalan Nasional Bhd.

The mandate was announced by the Prime Minister in September this year. Omar did not disclose when ValueCap would enter the local market in its mandate to support undervalued stocks.

“From our perspective, we (the Special Economic Committee) provided the guidance, but it is up to [ValueCap’s] management and its shareholders to actually execute the arrangements. We don’t interfere with its operations; it has its own governance and investment committee,” Omar told reporters.

The Edge Financial Daily reported on Thursday that ValueCap may see a partial delay in releasing its first tranche of funding of MYR6 billion, because at least one of the shareholders has yet to allocate its MYR2 billion share.

KWAP chief executive officer Wan Kamaruzaman Wan Ahmad had said in October that the first tranche of MYR6 billion should come in by the end of November.

Also read: 

Malaysia: ValueCap’s $4.7b injection not govt money, nor govt-guaranteed

Malaysia: ValueCap shareholders to contribute $4.6b fresh funds announced by PM

Malaysia’s Valuecap plans to grow its AUM to $2b by year end

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.