by SHAZNI ONG/ pic by TMR FILE

AMANAH Saham Nasional Bhd (ASNB) has declared income distribution per unit of 4.75 sen for Amanah Saham Bumiputera 2 (ASB 2) to 439,543 unit holders compared to six sen per unit declared in March last year.

At the same time, Permodalan Nasional Bhd (PNB) also announced 4.25 sen for Amanah Saham Malaysia (ASM) compared to 5.5 sen announced last year, to 553,188 unit holders, with a total income distribution payout for the two funds amounting to almost RM1.4 billion, for the financial year ending March 31, 2020 (FY20).

In March 2019, ASB 2 distributed a total payout of RM610.7 million to its 404,706 unit holders who own a total of 10.4 billion units, while ASM distributed a total payout of RM1.1 billion to 541,758 unit hol- ders with a total of 19.5 billion units.

In a statement yesterday, ASNB, the wholly-owned unit trust company of PNB said the performance of ASB 2 and ASM is benchmarked against the Malayan Banking Bhd (Maybank) 12-month fixed deposit.

“For FY20 ending March 31, ASB 2 and ASM have exceeded the benchmark of Maybank 12-month fixed deposit, where the annual total returns for the funds were recorded at 4.75% and 4.25% distribution rate respectively, compared to the 2.6% return recorded by Maybank 12-month fixed deposit,” it said.

As at Feb 29, 2020, ASB 2 recorded a net realised income of RM413.3 million, while ASM recorded a net realised income of RM646.7 million.

ASNB added that it has declared income distribution for three variable price funds, namely ASN Equity 3, ASN Imbang 2 and ASN Sara 1, with a total income distribution payout for the three funds amounting to RM228.7 million.

“ASNB also declared an income distribution per unit of 3.25 sen to 89,327 unit holders for ASN Equity 3, 3.5 sen to 86,426 unit holders for ASN Imbang 2 and 4.55 sen to 69,872 unit holders for ASN Sara 1,” it said.

The total returns of the three funds are benchmarked against the FBM100 and Maybank 12-month fixed deposit, at a ratio customised to each fund.

ASNB noted the income distributions declared by these funds are derived from the funds’ realised gains, dividends and other income.

“In line with its target benchmarks, PNB has always maintained a prudent asset allocation strategy and its significant exposure in the public markets provides PNB with a degree of investment liquidity to deliver sustainable returns to the unit holders.

“Despite a challenging year in 2019, PNB’s funds’ portfolios have held up in relative terms, outperforming their respective benchmarks largely due to the exposure in high-quality stocks with strong fundamentals and the steps taken to diversify the portfolio further,” it said.

ASNB said the computation of income distribution for ASB 2 and ASM is based on the average minimum monthly balance held throughout the financial year of each respective fund, while the computation of income distribution for ASN Equity 3, ASN Imbang 2 and ASN Sara 1 is based on the end-year balance held.

“The distribution declared by these funds will be re-invested as additional units into the accounts of unit holders and will be automatically credited into unit holders’ accounts on April 1, 2020,” it said.

Transactions for the five funds have been temporarily suspended from March 25 to March 31, to facilitate the computation of income distribution, ASNB added.

On views of the market, PNB cautioned that investors will continue to see companies facing earnings pressure and this will not only be confined to the Malaysian market, but globally as well, given current unprecedented conditions.

“While the economic impact from current events will be widely felt, as an investor with a longer-term horizon, the expectation is for the market to recover over the medium and longer run, after establishing a new normal.

“In adapting to these changes, PNB is focused on tapping into the prospects offered by the market mispricing to ensure that it will be able to ride through this volatility,” it said.

PNB added that it will continue to build the resilience of its investment portfolio amidst this highly volatile market backdrop as its investments undergo a rigorous evaluation process, and as the investment recommendations go through a multi-layer governance process.

“This is to ensure PNB’s portfolio comprises well-managed companies that can ride through the market cycles,” it said.