KUALA LUMPUR, March 2 ― Khazanah Nasional Bhd has continued to grow and protect its assets on behalf of the nation, with net asset value (NAV) increasing to RM86 billion in 2021 from RM79 billion last year, and has registered a compound annual growth rate (CAGR) of 5.8% since 2004.
The sovereign wealth fund said it also rolled out RM8.7 billion of new investments in 2021, with a significant portion invested in Malaysia (41.7% or RM3.6 billion) and raised RM4.8 billion through monetization of assets in its portfolio.
However, he said operating profit fell to RM670 million in 2021 from RM2.9 billion in 2020, mainly due to continued financial support to airlines and tourism businesses in Khazanah which were still resisting the headwinds of the Covid-19 pandemic.
“Earnings were also impacted by lower fair value gains and lower corporate investee dividend income due to weak 2020 earnings,” he said in a statement in conjunction with his update. annual press release today.
Khazanah has declared a dividend of RM2 billion to the government for 2021.
Meanwhile, Khazanah said its operating expenses (OPEX) had been reduced to RM420 million from RM490 million in 2020, while debt had increased slightly to RM48 billion from RM43 billion. ‘last year.
“The ratio of realizable value of assets (RAV) to debt remained healthy at 2.8 times,” he said.
In terms of its portfolio performance, Khazanah said its trading fund achieved a time-weighted rate of return (TWRR) of 19.0% in 2021, which equates to a three-year rolling return of 7.0. %.
He said the positive performance was mainly attributable to the recovery of the Malaysia-listed portfolio after three years of underperformance, the monetization of private equity investments in the United States and Europe, as well as the strong performance of its new public portfolio still in progress. actions have developed market deployment programs.
“Performance is in line with long-term expectations. This put Khazanah on track to meet our five-year long-term rolling target of a consumer price index of 3.0%,” he said.
On its strategic fund, Khazanah said it recorded a NAV TWRR of -11.4% in 2021, affected by Khazanah’s pandemic-sensitive investments, notably in the aviation and tourism sectors.
“Despite the difficult conditions, Khazanah achieved several important milestones, including the timely completion of the Malaysia Aviation Group (MAGB) restructuring exercise, which saw the reduction of RM15 billion in liabilities.
“This restructuring effort enables MAGB to be more financially resilient and prepares airline operations for the expected resumption of air travel,” he said, adding that he was maintaining support for its development assets, such as resorts and themed hotels, as well as Iskandar. Malaysia through capital injections in 2021.
On Yayasan Hasanah, Khazanah said in 2021, the foundation managed RM554 million and helped 1.5 million people through Covid-19 relief efforts and various other programs; Khazanah Research Institute released 30 publications and visitor numbers to Taman Tugu Malaysia increased by 30% in 2021 despite the park being closed for 19 weeks.
Moving forward, Khazanah said he had set out four strategic imperatives, namely “Moving Malaysia Forward”, “Building on our Financial Strength”, “Creating a Sustainable Future” and “Developing a Winning Team” to deliver sustainable value to Malaysians, with new growth sectors to be catalyzed by Dana Impak’s allocation of RM6 billion over the next five years.
Managing Director Datuk Amirul Feisal Wan Zahir said that despite a challenging environment of movement restrictions and reduced economic activity globally, Khazanah managed to create value, generate strong returns on investment and to increase its net asset value by RM7 billion last year.
“We also continued our rebalancing efforts to have a more diversified portfolio and took steps to support our beneficiary companies which have been most affected by Covid-19, notably in the aviation and tourism sectors”, a- he declared. ― Bernama