KUALA LUMPUR, Jan 18 (Reuters) - Malaysia's sovereign wealth fund Khazanah Nasional Bhd KHAZA.UL said the value of its portfolio rose 8.2 percent last year, boosted by growth in core companies such as CIMB Group Holdings Bhd CIMB.KL and utility group Tenaga Nasional Bhd TENA.KL .
The state fund's portfolio value rose to 157.2 billion ringgit ($39.7 billion) in 2017 from 145.3 billion ringgit in the previous year, Khazanah said in a statement at a news conference.
Its portfolio net worth adjusted (NWA) climbed to 115.6 billion ringgit from 102.1 billion ringgit.
CIMB was the largest contributor to the 13.4 billion ringgit increase in portfolio net worth adjusted, contributing six billion ringgit. This was supported by the lender's strong corporate earnings.
Khazanah's investments include stakes in CIMB, Malaysia's second largest lender by assets, telecommunications company Axiata Group Bhd AXIA.KL and Tenaga.
"We believe our portfolio is simultaneously resilient which means we can handle a lot of downside, but at the same time we are positioned for growth," Khazanah's managing director Azman Mokhtar told the news conference.
The fund is also the sole shareholder of national carrier Malaysia Airlines, for which it is spearheading a restructuring exercise.
Khazanah expects the airline to return to profitability by the first half of 2019, saying that currency fluctuation and oil price have impacted the initial target for a turnaround by this year.
"The first two and a half years of the recovery plan was about cost reset. And now, we are beginning to turn around but there are certain things we cannot control like the currency, oil price and even competition," said Azman.
Malaysia Airlines was de-listed from the Kuala Lumpur Stock Exchange in 2014, after the twin tragedies in which flight MH370 disappeared and flight MH17 was shot down over eastern Ukraine.
Khazanah also participated in several foreign technology deals such as Alibaba (NYSE: BABA ) Group's logistics firm, Cainiao, and fintech firm WeLab in China, as well as India's Infosys Ltd INFY.NS and Singapore's NYSE-listed Sea Ltd SE .
The fund also announced the launch of a $320.8 million sukuk exchangeable for Chinese securities brokerage firm CITIC Securities Co Ltd's Hong Kong-listed H-shares earlier on Thursday. ($1 = 3.9565 ringgit)
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.