THE Kina Asset Management Limited has reported an investment gain of K500,000 – or 1 per cent – in the third quarter despite the uncertainty which remains in all sectors of the global markets.
Chairman Sir Rabbie Namaliu said while the third quarter results were modest, there were positives to be taken away.
He said although the international constituents of the portfolio had largely negative returns, domestic holdings proved to be a linchpin- anchoring the portfolio amid the tumultuousness.
“In light of the uncertainty in global markets, we continue to see value in our domestic market, principally, the diversification benefits of a seemingly segregated local exchange,” he said.
“Our strategic position in Bank South Pacific, again providing KAML with steady, albeit small gains providing ballast amid global economic headwinds.”
Following the positive first-half of 2015, KAML’s portfolio was subject to erosion as a result of the August “flash-crash” driven by multifaceted issues.
They included the Chinese growth concerns, indications of monetary policy tightening in the United States and the residual effects of sustained low commodity prices.
Accordingly, the investment portfolio contracted 4.6 per cent to K48.3million from the previous quarter of K50.6 million.
Meanwhile, KAML’s licensed investment manager, Kina Funds Management, said the United States, China and to a lesser extent, Europe, continued to be the focal points of the industry and the primary determinants of capital movements and subsequent volatility.