Our Investments

Fixed Income

PNB has been increasing its exposure to fixed income as part of its overall investment portfolio diversification and risk-return optimisation. PNB's fixed price funds across different assets now have fixed income exposure. This also includes the ASN Imbang Mixed Asset Balanced, ASN Sara Mixed Asset Conservative funds and PNB’s first Shariah-compliant fixed-income fund, ASN Sukuk. 


PNB's credit analysts, fixed income portfolio managers, and dealers leverage their network of approved capital market intermediaries and financial institutions to source liquidity, participate in primary deals, and access both domestic and global research. 

Domestic Fixed Income

Investment in domestic fixed income focuses on a steady income stream, yield, and overall returns for portfolio diversification. PNB invests in sovereign (Malaysian Government Securities and Government Investment Issue) and corporate bonds. Guided by PNB’s domestic Fixed Income Framework, its domestic bond portfolio spread across various structures, sectors, ratings, and maturities.

PNB is actively involved in the primary fixed income market, participating in auctions for MGS, GII, and primary corporate issuances, which add depth and liquidity to the market. PNB also trades government and corporate bonds on the secondary market.

Global Fixed Income

PNB strategically invests in global fixed income to diversify and implement tactical shifts and yield strategies, guided by its Global Fixed Income Framework. PNB’s global fixed income portfolio encompasses sovereign and corporate bonds in various regions, especially focusing on developed market sovereigns due to market depth and liquidity. PNB also utilises selected fixed income ETFs to enhance their exposure to global fixed income instruments. 

Hedging

PNB’s operationalisation of hedging is guided by its Foreign Exchange Risk Management and Hedging Framework and Policy. A dedicated Hedging Desk within the fixed Income team works closely with PNB’s asset class managers for any required hedging. PNB prefers Shariah-compliant derivative instruments that are executed through approved intermediaries from a selected panel. Hedging instruments are judiciously used to manage foreign exchange risk, based on the funds’ needs, the characteristics of the asset classes, and the current forex outlook.