PNB's diversified portfolio cushions shocks: Rizal Rickman [WATCH]

KUALA LUMPUR: The president and group chief executive of Permodalan Nasional Bhd (PNB) revealed that the company's diversified portfolio is helping to protect returns from geopolitical shocks. Speaking during a visit to Media Prima Bhd, Datuk Rizal Rickman Ramli highlighted that over 30% of PNB's portfolio is now invested overseas.

Rizal noted that the portfolio's diversification across markets and asset classes allows stronger-performing investments to offset weaker returns during volatile periods. This is especially crucial given recent tensions in the Middle East and tariff-related uncertainties from the previous year. The CEO emphasized that PNB remains vigilant in monitoring and rebalancing its investments when opportunities arise.

Over a decade ago, more than 98% of PNB's portfolio was invested in Malaysia. Today, the portfolio has expanded to include investments across the public and private markets, real estate, and fixed income in Asia Pacific, Europe, and North America. This includes both developed and emerging markets. The international equity portfolio consists of individual stocks and global exchange-traded funds.

Rizal explained that if one asset class underperforms, another can help maintain the overall portfolio's performance. He also mentioned that they would continue to rebalance the portfolio based on market conditions, particularly highlighting the potential volatility of fixed income when interest rates rise.

The CEO underscored the importance of media to PNB, both as part of its investment portfolio and to reach Malaysians, especially younger generations. He explained that younger consumers are increasingly consuming information across various platforms rather than solely through one channel. PNB aims to engage this demographic by offering a range of financial products beyond traditional offerings, including variable-price funds, Hibah Amanah, zakat, and takaful solutions.