PNB Declares 5.5 Sen Income Distribution For Amanah Saham Bumiputera

PNB Declares 5.5 Sen Income Distribution For Amanah Saham Bumiputera

Permodalan Nasional Bhd (PNB) has announced a total distribution of 5.5 sen per unit for Amanah Saham Bumiputera (ASB) unitholders for 2019.

Challenging market environment

The total distribution, which comprises of a 5 sen distribution and a 0.5 sen bonus, is much lower than the payouts of previous years.

YearDistribution + bonus (sen)Total distribution (sen)
20195.00 + 0.505.50
20186.50 + 0.507.00
20177.00 + 0.257.25
20166.75 + 0.507.25
20157.25 + 0.507.75
ASB’s total distributions have been steadily declining in the past few years

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PNB chairman Tan Sri Zeti Akhtar Aziz said that the market environment in 2019 was challenging due to financial market volatility, ongoing US-China trade tensions and global trade slowdown.

“Notwithstanding this, ASB was able to deliver a total income distribution of RM9 billion in FY19 out of its realised gains buffered by its increasing international investments as planned under PNB’s Strategic Asset Allocation framework,” she said.

Despite declining distributions, ASB outperformed its benchmark, the Maybank 12-month Fixed Deposit, by 2.4% in FY2019.

As part of its five-year strategic plan, PNB will intensify efforts to diversify its investment portfolio, which includes increasing global exposure.

Investors need not worry

Let down by this year’s low distribution? Dr Ahmed Razman Abdul Latiff of Putra Business School (PBS) told Malaysia Kini that investors need not worry.

He said that ASB has always provided better returns than other investment instruments, even though its distributions have declined in recent years. If the stock market and economy recovers, he expects that investors will enjoy better returns.

As ASB units are offered at a fixed price, investors take on very little risk and will not lose capital, he added.

[Sources: 1, 2, 3, 4, image credit: The Malaysian Reserve]

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