KUALA LUMPUR (March 28): Permodalan Nasional Bhd (PNB) recorded a 6.9% increase in its assets under management (AUM) to RM298.5 billion for 2018, from RM279.2 billion a year earlier, against a background of moderating global growth and uncertain market conditions both domestically and abroad.

The fund saw a 7.9% increase in units in circulation to 236.6 billion for the year, versus 219.3 billion in 2017, from 13.8 million accounts across all 14 funds.

PNB group chairman Tan Sri Dr Zeti Akhtar Aziz expects the economic environment to remain uncertain in 2019 but said the fund will do its best in navigating the headwinds to deliver sustainable returns to its unit holders.

"While PNB will remain focused on creating value for our unit holders, investors also need to understand the risks in the financial market place. Our distribution of income depends on the performance of our investments, which in turn, depends on the investment climate that we are operating in.

"We will nevertheless strive to outperform the market through our robust investment process and stringent investment criteria," she said during the launch of PNB's annual report for 2018, earlier today.

The fund announced the income distribution for two of its fixed price funds, namely ASB 2 and ASM, with distributions of 6 sen and 5.5 sen per unit respectively. The total income distribution payout for the funds amounted to RM610.7 million for ASB 2 and RM1.1 billion for ASM.

It also announced the income distribution for three of its variable price funds, namely ASN Equity 3, ASN Imbang 2 and ASN Sara 1, with distributions of 4.1 sen, 4.2 sen and 5 sen per unit respectively.

In total, the fund paid out RM15 billion in dividends in 2018, the largest amount ever paid since its inception.

Zeti said PNB will be undertaking a mid-term review of its five-year strategic plan, looking at key areas such as strategic asset allocation, optimal liquidity management, enterprise risk management and organisational transformation.

The fund will continue to diversify its investment portfolios across different asset classes in different geographies, she said, with PNB looking to increase its investments in fixed income, real estate investment trusts, as well as private equity.

As at February 2019, its portfolio allocation in fixed income increased to 6.6%, from 5.8% a year earlier, while private investments accounted for 2.3% compared to 1.9% in the previous year.

Meanwhile, international investments accounted for 4% of its portfolio in February 2019, compared to 2.7% in February 2018.