Azman Mokhtar, managing director of Malaysia’s state investment holding Khazanah, said the net asset value of the company’s investments stood at $29 billion at the end of 2012. At the presentation of the firm’s annual review on January 17, he said this represented a rise of 24 per cent over 2011.
Khazanah made significant gains from making gains from divesting shares in companies.The investment holding cut its stake in hospitals operator IHH Healthcare through its $2 billion initial public offering in Kuala Lumpur and Singapore in July 2012. The fund also reduced its stake in Malaysian pay-TV operator Astro Malaysia Holdings during a $1.5 billion share sale in October 2012, and divested national car maker Proton Holdings.
The fund’s returns outpaced a 13 per cent increase in the MSCI World Index and a 15 per cent increase in the MSCI Emerging Markets Index.
In terms of new investments, Khazanah and Canada’s third largest insurer Sun Life Financial Inc. said they will jointly buy 98 per cent of the Malaysian insurance joint venture of Aviva Plc, the world No. 6 insurer based in the UK,with CIMB Group for $597 million in a deal that will accelerate Sun Life’s push into southeast Asia.