19 OUR SUSTAINABILITY APPROACH HOW WE ARE GOVERNED FINANCIAL STATEMENTS SHAREHOLDERS’ INFORMATION ADDITIONAL INFORMATION GROUP MANAGING DIRECTOR’S MANAGEMENT DISCUSSION AND ANALYSIS Asset and Wealth Management The Asset and Wealth Management division of the Group comprises Kenanga Investors Berhad (“KIB”), Kenanga Islamic Investors Berhad (“KIIB”), and Eq8 Capital Sdn Bhd (Formerly known as i-VCAP Management Sdn Bhd). Together, these entities form Kenanga Investors Group (“KIG”). Complementing these entities are the KIBB Digital Investment Management and Wealth Management units, extending a suite of offerings that encompasses conventional collective investment schemes, robo-advisory services, portfolio management, and a spectrum of alternative investments. Despite the downtrends in the market, the overall Group’s Asset and Wealth Management division recorded exceptional growth in FY2023, with a PBT of RM58.7 million compared to the PBT of RM54.2 million in the previous year. These results were due to significantly higher earnings from management and performance fees resulting from the ongoing expansion of KIG’s business and widening of its client base through multi-segmental products and services targeted individually at mass-retail, sophisticated investors, ultra-high-net-worth and corporate institutional investors. In 2023, KIG successfully launched the Kenanga Islamic Asia Pacific (ex-Japan) Total Return Fund. This strategic move expanded its suite of innovative investment solutions to address the escalating demand for regional exposure in the Asia Pacific (ex-Japan) market. The Fund provides investors with a distinctive avenue to capitalise on the region’s economic growth, driven by factors such as increased global integration and rising affluence. This solidified KIG’s position as a premier provider of Shariah-compliant investment solutions in the dynamic landscape of the Asia Pacific market. Continuing the Group’s ESG trajectory, KIG completed comprehensive screenings for its fixed-income stocks and sector-specific assessments for equities, with a heightened focus on sectors bearing elevated ESG risks. Since aligning with the Malaysian Code for Institutional Investors in 2017, KIG’s engagement approach has transitioned from basic awareness initiatives to fostering substantive, two-way discussions with investee companies. These engagements center on enhancing sustainability practices and formulating strategies beneficial to both entities and the broader economic and social spheres. KIG’s current strategic emphasis lies in the management of transition risks associated with the recalibration towards a green economy, reaffirming the Group’s unwavering commitment to responsible and sustainable investing. KIG continues to expand its network of licensed unit trust and private retirement scheme consultants which has grown to over 5,200 advisers in 2023, making them the second (2nd)- largest distribution force in the industry. Furthermore, its strategic presence across Malaysia is bolstered by its fourteen (14) regional offices with recent relocations to newer premises in Kota Damansara, Ipoh, Kluang and Kenanga Tower itself. For the seventh (7th) consecutive year, KIG was affirmed an investment manager rating of IMR-2 by Malaysian Rating Corporation Berhad, since being first rated in 2017. The rating considers KIG’s well-established investment processes and sound risk management practices. As at end-June 2023, most of KIG’s funds had performed better than benchmarks and were comparable to peers. It continues to be recognised for its consistent top performance. In 2024, the LSEG Lipper Fund Awards Malaysia 2024 awarded KIB under the following categories, Kenanga Malaysian Inc Fund for ‘best Equity Malaysia Diversified – Malaysia Pension Funds over 10 Years’, and Kenanga Diversified Fund for ‘best Mixed Asset MYR Flexible – Malaysia Pension Funds Awards over 10 Years’. The Hong Kong-based Asia Asset Management’s 2024 Best of the Best Awards awarded KIB the following awards; ‘Malaysia Best Equity Manager’, ‘Malaysia Best Impact Investing Manager’, ‘Best Impact Investing Manager in ASEAN’, ‘Malaysia Best House for Alternatives’, ‘Malaysia Most Improved Fund House’, ‘Malaysia Best Investor Education’, ‘Malaysia CEO of the Year’ and ‘Malaysia CIO of the Year’. Despite market volatilities over the past four (4) years, KIG’s steadfast commitment to sustainable performance, valuedriven product suite, and exceptional customer service has cultivated strong customer satisfaction and loyalty. Looking ahead, KIG aims to build on this success by expanding wealth protection solutions, including insurance and private trust. KIG will also enhance client service through nationwide branch expansion, digital channel improvements, and strengthening its agency force. With a robust multi-segment and multi-product framework, an ESG Blueprint, and an enduring commitment to sustainability, KIG is well-positioned to deliver lasting value to investors.
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