In a year defined by geopolitical “headliness” and erratic trade tensions, Kenanga Investors Berhad has cemented its position as a dominant force in Malaysian equities. The firm swept four titles at the LSEG Lipper Fund Awards 2026, notably securing wins for its flagship Kenanga Growth Fund (KGF) and the newly awarded Series 2 (KGFS2).
The story for the Malaysian Business reader is one of “Constancy” over hype. While mid-cap stocks suffered from sudden swings in sentiment throughout 2025, Kenanga’s disciplined strategy allowed both KGF and KGFS2 to surpass RM1 billion in Assets Under Management (AUM) each by December 2025.
The Alpha: Fundamentals Over Headlines
Kenanga’s outperformance is a direct result of a “bottom-up” stock-picking philosophy that ignored the noise of global trade wars to focus on balance sheet strength.
- The Yield Premium: The Kenanga Growth Fund (KGF) delivered a staggering 48.82% return over the five-year period ending December 2025, dwarfing its benchmark of a mere 3.25%.
- Risk Management: By maintaining prudent buffers and incremental rebalancing, the firm successfully navigated the “Small-Cap Trap” that snagged many regional peers during the 2025 sell-offs.
Editor’s Take: The 2026 Thematic Pivot
As we move deeper into 2026, Kenanga is signaling a high-conviction shift toward the AI and Data Centre infrastructure boom. This aligns perfectly with the recent surge in Johor and Penang investments we’ve tracked.
- The Strategic Why: CIO Lee Sook Yee has highlighted Artificial Intelligence, utilities, and selective REITs as the primary growth drivers for the coming year.
- The Value-Unlock: With the launch of Kenanga Growth Fund Series 3 (KGFS3), the firm is doubling down on this “Top-Down/Bottom-Up” hybrid model. For the mass audience, this means Kenanga is positioning itself to capture the secondary effects of Malaysia’s data centre land-grab—benefiting not just the tech giants, but the utility and cooling companies supporting them.