AGAINST the backdrop of a pandemic-stricken economy, Kenanga Investors Bhd has achieved an unenviable feat by declaring a record-breaking total distribution amount of RM531.7 mil to its clients for its FY2020.
This follows the declaration of a final income distribution of RM256 mil for 21 retail funds till end-March by the asset and wealth management company and after taking into account an earlier RM275.7 mil that has been distributed during the course of 2020.
Income distribution yields ranged from 8% to 12% for its equity and balanced funds while fixed income funds generated average yields of 6%.
The income distribution was derived from the funds’ realised gains, dividends and other income across equity, fixed income and mixed asset classes which included the firm’s flagship funds, namely the Kenanga Growth Fund and Kenanga Syariah Growth Fund.
“The outperformance from our funds echoes our superior bottom-up stock selection in small-and-mid cap counters, many of which have exhibited strong earnings growth in the past few years, including 2020,” commented Kenanga Investors’ executive director and CEO Ismitz Matthew De Alwis.
“Kenanga Investors’ long-standing firmwide commitment towards a ‘consistent top performance’ philosophy is reflected even when markets are volatile as we strive to protect and hedge risk while taking advantage of positive conditions.”
Despite this stellar performance, the past year was not without its challenges as many segments of the economy were affected due to the lockdowns.
De Alwis maintains that the key factor was to avoid panic selling while adhering to the firm’s investment strategy and stringent risk management framework which allowed it to identify key companies which were best positioned during the period.
For 2021, Kenanga Investors has structured its approach to centre on recovery and growth themes with vaccination programmes progressing and the perpetual interest in tech and electronics.
“Moving forward, we recognise the growing demand within the IT infrastructure industry stemming from the work-from-home movement,” envisaged De Alwis.
“We are excited by these rising trends and remain committed to embracing them by developing products that are relevant and sustainable so as to enable our clients to build a more diversified portfolio.”
Since 2019, Kenanga Investors has completed two major acquisition exercises to expand its foothold within the asset and wealth management space – first with Libra Invest Bhd in 2019 and more recently, with i-VCAP Management Sdn Bhd, the first Shariah exchange-traded fund (ETF) issuer in Malaysia.
As of end-February, the firm manages 38 unit trust funds, two private retirement schemes (consisting of six core funds and one non-core fund), six ETFs, 29 wholesale funds and other funds from government agencies, pension funds, insurance, corporate and individual clients with total assets under administration amounting to RM14.7 bil. – April 9, 2021
