PNB has done well, but could give double-digit income once in a while

By ZAIDI ISHAM ISMAIL
[email protected]

KUALA LUMPUR 24 Dec - It is a well-known fact that the Bumiputeras' in the country are economically left behind. At the last count, Bumiputera only garner 17-18 percent of the country's economic wealth.

Hence to narrow the wealth disparity, Permodalan Nasional Bhd or fondly known as PNB was set up in 1978 primarily to augment the Bumiputera's economic pie.

Subsequently, the state-owned fund manager launched its flagship product the Amanah Saham Nasional and its most popular product to date, the Amanah Saham Bumiputera.

ASB was hatched to uplift the economic standing of the Bumiputeras' in the country.

PNB is also tasked to help the Bumiputera navigate around the nitty gritties of the investment world as well as its related tools which can be too complicated for the village folk.

Over the years, PNB has done well which has seen its depositors swell to 14.5 million as well as amassing some RM320 billions of funds.

So much so, that some of its products are now open to  non-Bumiputeras due to its growing popularity.

Kudos to PNB for rising above the occasion to be able to distribute a respectable 5 percent ASB return yesterday amid the challenging pandemic and economic conditions.

This is no mean feat considering the challenging equities market outlook right now be it in Malaysia or globally.

However, PNB is still able to give a respectable income distribution at a time when other private unit trust firms may be struggling to give decent returns to its unit trust holders.

But once in a while, or when the economy is on solid footing, PNB could give double-digit returns once in a while to maintain its allure among investors.

This is because depositors are getting smarter and smarter able to compare PNB with other investment companies and money-making tools.

As an example, a certain local bank-backed unit trust manager was able to give returns up to 200 and 300% return during its heyday.

Tik Tok videos are already viral comparing PNB with the stock market which can give returns up to 30% in a day if done correctly.

Investors are already comparing PNB to the cooperatives of a government-linked bank and commodity giant which at times are able to give returns of as high as 30 percent.

But to be fair to PNB, the cooperative was able to do so due to high commodity prices.

PNB also has to contend with bitcoin and other crypto currency products which are gaining traction.

Whichever way, PNB has done well.

It's annual Minggu Amanah Saham Malaysia and compound income growth are legendary.

The government could also perhaps expand further PNB's investment portfolio other than the stock market, property, corporates and other asset classes.

Admittedly, PNB can't splurge on lavish income returns for its depositors as it has to maintain a buffer in cash reserves.

But at the same time, the country's largest fund manager has to stay in tune with the times and current trends to ensure its lustre remains attractive to investors for many years to come.

PNB would have invested in technology, logistics, rubber glove, export oriented and semiconductor firms which are doing exceptionally well this year due to the pandemic.

Hopefully, PNB can pay out double digit growth in 2022 or 2023 so that its investors will stay loyal to ASB, ASN and others and not stray to other investment firms. – DagangNews.com