Infrastructure the next key investment area: Kina Asset Management


The great untapped investment area in Papua New Guinea is infrastructure, according to Syd Yates, ‎Executive Director of investment fund Kina Asset Management Limited (KAML).

Syd Yates

KAML’s Syd Yates

Yates told  Business Advantage PNG that infrastructure was ‘an obvious area of growth’.

‘I think we’re at a stage where we need to have more investment in infrastructure not just by the government, but by investors within Papua New Guinea and also outside Papua New Guinea.’

KAML, Papua New Guinea’s only listed managed fund, this week announced a year-to-date investment return of 17.5%, generating a net profit of K7 million (US$2.7 million) for the nine months ending 30 September.

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Chairman Sir Rabbie Namaliu said the investment portfolio increased by K6.3 million (US$2.4 million), from K42.3 million (US$16.12 million) at the end of December 2012 to K48.6 million (US$18.52 million) at the end of September.

He said because of the falling kina, the fund had trimmed overseas investments, and its portfolio is now about 45% local and 55% offshore compared to the previous 40:60 allocation.

KAML’s local portfolio includes shares in BSP, Credit Corporation, CPL Group, NBPOL, Oil Search and Newcrest Mining. Its international portfolio includes CSL Ltd, Westpac, ANZ, NAB, Coca-Cola Amatil, Mirvac, Transurban and Vanguard Investments.