Khazanah targets 20pc return on new investments

Khazanah targets 20pc return on new investments
By Hamisah Hamid
Published: 2010/09/28

STATE investment arm Khazanah Nasional Bhd expects its newer investments, including the London-based carbon emission consultancy Camco International Ltd, to generate over 20 per cent in annual returns.

“We are hitting about 13 per cent, but I think for our newer investments, we are hitting over 20 per cent in terms of annual returns,” Khazanah managing director Tan Sri Azman Mokhtar told reporters on the sidelines of the World Capital Markets Symposium 2010 in Kuala Lumpur yesterday.

Khazanah bought 9.28 million Camco shares at 20 pence each, which gives it a 5.3 per cent stake. It will also partner to invest in the emissions-to-energy market in Southeast Asia.


Azman said Khazanah has paid a fair price.


“The amount is relatively small relative to our portfolio but it is an important investment in terms of understanding the technology and methodology in this area … and on top of that, we think that it’s financially viable,” he said.

Khazanah feels it needs to be in the area because under the New Economic Model, sustainable development covers carbon emission reduction.

He also said that currently, Khazanah’s gross portfolio is about US$35 billion (RM108 billion).

“If you were to take foreign holding of our key companies,
for example CIMB or Axiata, the foreign component is about 20 per cent.

“I think 80:20 (local:foreign) is about right at this stage of our development as we need region

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