KENANGA ANNUAL REPORT 2019

O U R P E R F O RM A N C E 1 2 3 4 5 11 6 7 CORPORATE HIGHLIGHTS Completion of Acquisition In the third quarter of 2019, Kenanga Investors Berhad (“ KIB ”), the asset management subsidiary of Kenanga Group, completed its acquisition of 100% equity share in Libra Invest Berhad (“ LIB ”), a fund management arm of ECM Libra Financial Group Berhad. The acquisition, has increased KIB’s total assets under management (“ AUM ”) to RM13.5 billion, solidifying its position as one of Malaysia’s leading unit trust and asset management companies. Now, with broader product offerings, cost synergies, and widened distribution channels and agency force, the business is primed to fast-track growth, profitability and market leadership. New Product Line Up Heeding the call for products that capitalise on market volatility and the need for alternative investment instruments, the Group launched retail securities borrowing and lending (“ SBL ”) in July 2019, in a move to boost retail participation in a segment typically reserved for institutional investors. Through lending of stocks for short- selling, hedging or arbitraging, individual shareholders are now able to optimise their portfolio across varying market conditions. As mentioned, we successfully listed an innovative, first-of-its-kind ETF on the Main Market of Bursa Malaysia Securities Berhad (“ Bursa Malaysia ”) earlier this year, broadening the accessibility of unconventional investment avenues for traders. This new product allows traders to hedge against price swings, amplifying gains even during market corrections. While both SBL and ETFs are still in their early stages in South East Asia, they have been garnering strong traction and showing tremendous growth potential. Through our continued efforts to promote and raise awareness of these innovative products, we look forward to them becoming mainstream investment options, which will enable our retail investors to make the most of their participation in the capital markets, leading to a more vibrant marketplace. Digital Innovations During the year, we continued to make headway on our digital journey, focusing on customer-centric technologies and automation of operational processes. Working hand-in-hand with our IT partners, we beta tested our Algorithmic Trading platform towards the end of 2019. Combining predictive analytics with data processing speed, this platform is set to transform the trading landscape for our dealers and customers. We aim to fully release it by this year. Complementing our suite of asset management products, we target to rollout an investment robo- advisory platform for the mass market towards the end of Q4 2020. With rapid consumer shift towards Fintech, especially amongst younger investors, this platform, which provides fully automated, AI-driven financial investment service, will spur the acquisition of an underserved segment in the marketplace. On the operational front, our approach was predicated on balancing the maintenance of legacy systems, with practical investments in new technologies. We have further harmonised the front and back end systems via Robotic Process Automation and Enterprise Workflow Management, in a bid to build a robust end-to-end IT ecosystem for the Group. SEGMENT REVIEW Investment Management page 14 Listed Derivatives page 14 Structured Lending and Trade Financing page 14 Equity Broking page 12 Investment Banking page 13 Treasury page 13