KUALA LUMPUR: Economists believe that Amanah Saham Nasional Bhd (ASNB), the wholly-owned unit trust management company of Permodalan Nasional Bhd (PNB), has the capacity to announce the same or even better dividends in 2024, thanks to expected rate cuts in the US and better economy growth at home.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said while uncertainties on the US Federal Reserve's rate cuts may result in market volatility, the possible shift in the global monetary stance should be positive for the equities market.
"As such, there could be a chance that the dividend rate can be sustained," he told Business Times.
Reflecting on the total income distribution of 5.25 sen announced for this year, Afzanizam opined that it is a decent performance considering the volatile markets this year following heightened uncertainties over interest rate hikes in the US, China slowdown and geopolitics.
He said at this rate, the dividend is much higher than the inflation rate, which is at 1.8 per cent in the most recent month.
"The underlying assets for ASB are equities. Therefore, volatile equity prices could affect the dividend performance and such volatility will hinge upon the extent of global slowdown and how quick global monetary authorities to such risks," he said.
Meanwhile, Putra Business School economic analyst Assoc Prof Dr Ahmed Razman concurred that it is not impossible that the dividend for next year will be higher than this year, based on the higher economic growth projected for next year by the government and World Bank.
He noted that the higher dividend payout for this year was expected as many of the economic indicators this year are positive in nature.
"Even though equity and real estates performance are still mixed in term of its performance, I think ASB managed to announce higher dividend due to its overseas equity investment.
"However, we cannot discount the fact that geopolitical events might cause negative impact to ASB's performance especially if it escalates further next year, so it is always a possibility and the situation remains uncertain," he said.
President and group chief executive Ahmad Zulqarnain Onn said the group continued to demonstrate its resilience in navigating the uncertainties of 2023.
"As we move into a new year and charting new opportunities, we will continue with our investment strategies and remaining steadfast in our commitment to deliver our mandate," he said in a statement.
Ahmad Zulqarnain said the ASB portfolio has recorded a strong performance, resulting from its asset allocation and diversification strategies.
"A number of landmark transactions were executed to enhance value for unitholders. "ASB continues to be the investment of choice for millions of Bumiputeras delivering consistent returns and forming an integral part of the savings plan for over 10.8 million customers," he added.
Ahmad Zulqarnain said 2023 also witnessed the launch of the refreshed myASNB Superapp to provide enhanced customer journey and experience to unitholders and PNB's first Integrated Annual Report (IAR), which includes sustainability into the group's reporting framework to enhance reporting standards and transparency in alignment with global best practices.
He noted that following the launch of ASN Sukuk fund in November 2022, PNB saw healthy demand from unitholders with more than 1 billion units sold since launch.
Moving into 2024, Ahmad Zulqarnain said PNB will embrace innovation and digitalisation to enhance unitholders' experience, while keeping itself on track in delivering the 10 environmental, social, and governance (ESG) commitments. "PNB will also be more active in championing financial literacy to uplift the financial lives of Malaysians across generations."
"Among the initiatives include offering Auto Labur, a recurring investment function on myASNB app, to boost savings habit and promoting the ASNB Academy, a financial literacy tool accessible for all Malaysians which serves as a knowledge hub and reference center on investment and financial planning," he added.
PNB saw an increase in number of accounts to 15.6 million as of October 2023 from 15.2 million last year.
ASNB, the wholly-owned unit trust management company of PNB, has declared a total income distribution of 5.25 sen per unit for its flagship fund, ASB, for the financial year ending Dec 31, 2023 (FY23).
The total distribution consists of an income distribution of 4.25 sen a unit and a bonus of 1.00 sen a unit.
The total payout amounts to RM9.3 billion and will benefit 10.8 million ASB unitholders.
Last year, ASNB announced the ASB distribution at a rate of 4.6 sen per unit and an additional bonus of 0.5 sen per unit, which was lower compared to 2021.
In 2021, the income distribution for ASB was 5.0 sen per unit, comprising an income distribution of 4.25 sen per unit and a bonus of 0.75 sen per unit. In 2020, the income distribution was 4.25 sen per unit without any bonus.