KUALA LUMPUR: Khazanah Nasional Bhd’s realisable asset value (RAV) of its investments grew 7.8% to RM145.6 billion last year from RM135.1 billion in 2013, which included contribution from its investment in US-listed Alibaba Group Holding Ltd.

Its net worth adjusted value, which deducts liabilities from assets, also saw a 9.2% jump to RM110.8 billion last year.

Managing director Tan Sri Azman Mokhtar said the shares Khazanah divested upon Alibaba’s initial public offering have multiplied 4.5 times in value to over RM5 billion to date.

“We began our investment in Alibaba two or three years ago. The total investment cost was RM1.3 billion,” he told reporters at the 11th Khazanah Annual Review yesterday.

“Our current holding (in Alibaba) is now valued at RM3.9 billion ... we’ve kept more than half of our stake in the group because we believe there is still more upside there,” he said.

Azman said Tenaga Nasional Bhd was the largest contributor to the state-owned strategic investment fund’s 2014 RAV growth at RM4.9 billion. Other major contributions included IHH Healthcare Bhd (at RM3.6 billion) and telecommunications companies (RM2.9 billion), namely Telekom Malaysia Bhd and Axiata Group Bhd.

Its unaudited pre-tax profit last year stood at RM3.21 billion, up from 2013’s RM3.13 billion. Its 10-year cumulative pre-tax profit wasRM22.33 billion. Khazanah shareholders’ funds stood at RM35.1 billion in 2014, versus 2013’s RM29.4 billion. This year marks the end of Khazanah’s 10-year GLC Transformation Programme, in which it sought to grow its major investments into regional powerhouses. Azman revealed that the “graduation” date will be Aug 7, subject to Putrajaya’s approval.

This article first appeared in The Edge Financial Daily, on January 15, 2015.