KUCHING: Amanah Saham Sarawak (ASSAR), Sarawak flagship fund, has witnessed an encouraging performance, of which it had announced an interim dividend distribution of RM11.71 million for the first half of its financial year ending June 30, 2024.
Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said the interim income distribution of 2.50 sen per unit, will benefit 57,613 investors, calculated based on the unit holdings as of Dec 31, 2023.
“This distribution is based on the earnings for the first six months of the current financial year, which is quite encouraging considering that the post-restructuring of the ASSAR Fund which was only fully invested in July 2023 to achieve an optimal asset accumulation in line with ASSAR’s mandate and new investment strategy,” he said.
He said this when announcing the ASSAR interim dividend distribution at Hikmah Exchange Event Centre here on Friday.
Alongside with the competitive dividend distribution, Abang Johari said the ASSAR remains a safe and low-risk investment or savings instrument, given its mechanism of ensuring a minimum price of RM1.00 per unit, a primary feature of ASSAR since 1998.
“This minimum price guarantee mechanism will continue to play a role in mitigating any economic downturn impacts or severe stock market declines.
“This safeguard allows ASSAR units to be sold back at a minimum price of RM1.00 per unit throughout the guarantee period – regardless of economic or stock market conditions – thus shielding ASSAR investors from significant losses on their capital.
“This aligns with ASSAR’s socio-economic goals as a low-risk, secure and long-term alternative savings scheme,” he said.
On ASSAR’s restructuring exercise, Abang Johari said it was completed on Oct 21 last year and it began to yield positive outcomes.
“This is proven with the Net Asset Value (NAV) per unit of ASSAR, which consistently increased to RM1.0854 as of Dec 31, 2023, reflecting a growth of 8.54 per cent since the restructuring,” he said.
He also said the gross income generated for the first six months of the current financial year ending June 30, 2024, amounted to RM15.59 million.
“Of this total, 49 per cent or RM7.59 million derived from interest income of fixed income securities, 33 per cent or RM5.14 million resulted from equity or stock sales gains, while the remaining 18 per cent or RM2.86 million comprised equity holding dividends, interest income from money market instrument, and capital gains from the sale of fixed income securities.
“After deducting expenses, ASSAR Fund’s net income for those six months reached RM13.29 million,” he said.
He added the ASSAR’s new investment strategy, allocating at least 70 per cent of investments in fixed-income securities, has successfully reduced volatility in the persistently challenging equity markets.
“This shows the importance of diversification strategies in managing portfolio risk to generate sustainable and competitive returns,” he said.
He thus believed that ASSAR will remain resilient in meeting its objectives despite the current uncertain economic and market conditions.
“I am confident that the ASSAR management will do their utmost to navigate any future challenges, believing that they will continue the success achieved in building a truly resilient portfolio by optimising the mix of diverse asset classes,” he said.
Later in a press conference, Abang Johari said ASSAR’s performance was not encouraging when he took over as the chief minister.
“That is why we never get a dividend for the past nine years. Thus, I have urged ASSAR to be revamped and we worked hard to change the investment ratio by investing in fixed instruments which provide a more consistent return, with some for equity funds.
“The equity market is very volatile. Once you invest wrongly, there would be no profit. So, it is important to really study the capital and equity markets properly,” said Abang Johari.
