PMB Investment eyes RM5 bil in asset under management by 2022

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KUALA LUMPUR (June 4): PMB Investment Bhd, a wholly-owned subsidiary of Pelaburan MARA Bhd, is optimistic it can increase its asset under management (AUM) to about RM5 billion under its Vision 2022 plan, from RM1.2 billion as at May 29, 2019.

Its chief executive officer Najmi Mohamed said with a good business plan, right strategies and relentless effort, the company could achieve the target, despite uncertainties on the global economic environment.

“At the current juncture, we are trying to recruit and grow the number of our unit trust consultants to 1,400 for 2019 from about 1,000 to-date, so that they will bring us bigger sales. We have ongoing recruitment activities to achieve the target number.

“At the same time, we have started to approach corporates and government-linked companies (GLCs) to invest with us...they have bigger investment portfolios to divest into unit trust funds,” he told Bernama.

PMB Investment, he said was also planning to launch another cash management fund this year.

“We have submitted the application to the Securities Commission Malaysia (SC) for the establishment of the fund, and is now awaiting the authorisation from the SC,” he added.

On the impact the China-United States (US) trade dispute on PMB Investment, he said the company was not highly impacted as it had only some percentage of assets invested in the stock market.

“The movement of the market is very much influenced by the dispute and it is continuously taking precedence in both financial and stock markets globally.”

Therefore, it affected the value of PMB Investment’s investment in the stock market as well, he explained.

“Investors seem resigned to a prolonged trade war and dimmed global growth outlook. Investors are waiting for further developments on the US-China trade front. Continuing trade tension between the US and China have kept investors in most other regional markets on the sidelines,” he added.

On the overall impact of the trade dispute, Najmi said just recently the US raised levies to 25 per cent from 10 per cent on US$200 billion (US$1=RM4.17) worth of Chinese goods, and Beijing retaliated by imposing higher tariffs on US$60 billion worth of US goods.

The trade tension escalated further, after the US Commerce Department moved to add Huawei and 70 affiliates to its so-called "Entity List", effectively banning the Chinese telecoms giant from buying parts and components from US companies without government approval.

“As electrical and electronics is the second biggest component of export, this segment will continue to suffer as the raging technology war between US and China unravels global supply chain, and systems, applications and products demand for handset devices, amid rising protectionism between the two continents.”

Hence, there would be some impact on Malaysia’s gross domestic product, given hand-held components assembled and shipped out from Malaysia accounts for 16%-18% of exports. — Bernama