Pelaburan Mara Bhd estimates to be able to achieve income of RM50mil and net profit of RM30mil in the financial year ended Dec 31, 2014.
It said on Sunday that was a 50% year-on-year growth, and the highest in its 47-year history.
“As a group, Pelaburan Mara has consistently registered a high return on equity (RoE) of more than 13% and profit for its business since its incorporation in 1967,” it said in a statement to rebut a news report that it was seeing huge paper losses.
Pelaburan Mara said the news article reported it was believed to be looking at some RM1bil in paper losses from its investments. The report, according to Pelaburan Mara, had suggested the paper losses could stem from its direct major shareholdings in public-listed companies as well as through its unit trust fund, managed by PMB Investment Bhd.
It described the news report as not only erroneous but also defamatory. The conclusion is not only factually wrong but also illogical, it said.
“Pelaburan MARA has its own governance and risk management standards for its investment activities,that include strategic asset allocation which serves as a guiding principle to achieve a diverse and balanced portfolio.
“Consequently, our investment in equity market is not more than 40% of total investments in a portfolio that also includes money market, fixed income and alternative investments,” it said.
Pelaburan Mara added with equity investment of only RM260mil as at Dec 31, 2014, “it defies logic for Pelaburan MARA to suffer paper losses of RM1bil. Even if all investments are written off, the losses will only be to the amount of the initial investment”.
It also pointed out PMB Investment, being a licensed entity under the Capital Markets Services Act (CMSA), operates separately as an Islamic fund manager and a unit trust management company, and is not a “conduit” for Pelaburan Mara as implied by the report.
Pelaburan Mara also said PMB Investment manages 14 unit trust funds, a wholesale fund and several discretionary portfolio accounts with investment mandates in equity, Sukuk and money market. It has to adhere to a strict investment process as approved by its investment committee.
PMB Investment posted a total return of 62.7% for three years ended December 2013, while its one-year return for the year 2013 was 47.9%, a testimony of its strong governance and investment process.
Pelaburan Mara added PMB Investment won several awards, the latest of which was the Best Islamic Equity Malaysia for three years at The Edge-Lipper Malaysia Fund Award 2014.