Thursday, May 14, 2009

Launching of iCapital International Value Fund

Capital Dynamics (Australia) Ltd, a member of the Capital Dynamics group led by the renown Malaysian fundamentalist investor and fund manager Mr. Tan Teng Boo (陈鼎武), will launch the iCapital International Value Fund on 1 June 2009.

As a tracked record, from 1998 to Mar 2009, Capital Dynamics Asset Management Sdn Bhd run by Tan Teng Boo delivered a net compound return of 19.78% annually versus 3.16% per annum for the Kuala Lumpur Composite Index (KLCI). Meanwhile, Buffett’s Berkshire Hathaway has delivered annual returns of only 5% over that period! If one were to compare Tan’s performance with Warren Buffett’s in the last 10 years, Tan wins. (Source: The Star - Up Close and Personal with Tan Teng Boo)

The iCapital International Value Fund (ICIVF) is an open ended, managed investment scheme registered in Australia which invests in listed securities globally. As investors do not pay any entry or exit fees, they buy and sell based on its NAV. The ICIVF will be denominated in Australian dollars.

Any interested investors, retail, corporate, or institutional, can invest in ICIVF. The initial investments are kept to A$20,000 (around RM50,000). Additional investment required is A$2,000.

A very interesting question to ask to fellow Malaysian: if you have RM50,000 ready for investment, do you prefer to invest in ASM, ASW2020, or ICIVF?

Capital Dynamics will conduct 2 road shows in Kuala Lumpur to explain about this international fund.

Venue: 16th Floor, Plaza First Nationwide, 161 Jln Tun HS Lee, KL.

  • 15 May 2009 (5.30pm - 7.30pm)
  • 21 May 2009 (6.00pm - 8.00pm)
There are also road shows in Kota Kinabalu, Sibu, Kuching, Melaka, Penang and Singapore in early June 2009. Click here for the flyer and registration form.

Click here for more information about the iCapital International Value Fund.


Anonymous said... Reply To This Comment

Dear Harimau,
I will choose ICIVF if I have RM50K now. I have plan to send my kids to oversea study. My first choice is Australia/NZ. Hopefully by that time, ICIVF have appreciated to the amount I need. :)


Anonymous said... Reply To This Comment

Dear Voyager,

Everything seems good, a few concerns here:

1) Exchange rate risk: Aussie $ is quite volatile against RM. In order not to suffer exchange loss, we can only withdraw the money at the time when the exchange rate favor to us, i.e. the fund is not so liquid. Solution, invest only with your "non-urgent" money.

2)Performance fee at 6%: is it high? depends on what basis you compare with. It's subjective and relative.

3) Inflexible/illiquid withdrawal mode: investor can only withdraw quarterly, and also early notice must be given,

4) The fund incurs some GST tax from Aus gov, the percentage looks small, long term effect hard to calculate. GST might be reviewed from time to time. There might be other tax.

Just to share my views, might not reflect the whole truth.


Voyager8 said... Reply To This Comment

Hi David,


The risk of investment depends on how much you know about what you are investing.

You have done some pretty good homework.

AhYap said... Reply To This Comment

Is the moon overseas really brighter?

Is the lawn offshore really greener?

I don't think so.

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