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.