Monday, December 29, 2008 Bhd (ICAP, 5108)

Established as a closed-end fund (CEF) with 140 million shares by now, Bhd (ICAP, 5108) has been listed in the main board of Bursa Malaysia since October 2005.

Similar to unit trust funds, ICAP pools together money for investment in Malaysian securities and/or other permitted assets to gain revenue and profit for the benefit of its shareholders. The appointed fund manager who is in charge of ICAP's investment activities is Capital Dynamic Asset Management Sdn Bhd (CDAM) head by Mr Tan Teng Boo (陈鼎武), which has been operating for more than 10 years and manages more than 50 discreationary accounts for various types of investors.

Funds under CDAM's management have consistently outperformed the market, and recorded an attractive annual compounded rate of return of more than 20% for the period from April 1998 to September 2008. The graph below shows its performance benchmarked with KLCI.

According to ICAP's IPO prospectus, so far CDAM has never made any negative returns in any year, and registered positive returns in 1998, 2000 and 2002 despite the bearish general market.

The primary investment objective of ICAP is long-term capital appreciation of its investments, whilst dividend and/or interest income from these investments would be of secondary consideration.

Its investment policy is to allocate not more than 10% of its net asset value (NAV) in any single public listed company in Bursa Malaysia. It may also invest a maximum of 10% of its NAV in unlisted Malaysian companies. As disclosed in its 2008 Annual Report, its portfolio as at June 2008 is as follow:

The NAV of ICAP is calculated on every Wednesday and updated by the end of Thursday on their website as well as Bursa Malaysia's announcement website. Today its last announced NAV by 24-12-2008 stood at RM1.56 and its share price closed at RM1.37 on 26-Dec-2008. This mean its share price is at a 13% discount position from its NAV. The graph below shows its share price versus its NAV.

The best time to invest in a CEF is when the market is undervalued or when there is a lack of excessive optimism. If you intend to invest in ICAP, perhaps the technical analysis below can give you some clue about the timing.

Click here to visit the official website of ICAP.

Disclaimer: This article is intended for sharing of point of view only. It is not an advice or recommendation to buy or sell any of the mentioned stock counters. You should do your own homework before trading in Bursa Malaysia.


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Voyager8 said... Reply To This Comment


在 10 月尾股价最低的时候,成交量最大,那些忍不住放手的人在最低点卖出了,而那些在最低点大量扫货的人,目前已经有赚。过去两个月股价持稳且成交量变少,显示在最低点大量扫货的人属于长线投资者,还没什么卖出那些已经有赚的股票,收了两个月。

14 天的 MA 线已经回到 25 天的上面,同时在尝试突破 50 天的 MA。Chaikin Money Flow (CMF) 回到正面且维持了一段日子。MACD 显示 bullish 趋势。

加上 这一篇文章 所描述的观察方法,目前技术面显示股价趋向稳定筑底。而基本面显示其以低于 NAV 的价格交易,股价仍然被低估。而如果观察其 NAV 过去三个月的变化,可发现其投资组合已经被 TTB 调整到可抗跌的程度,风险比年中的时候降低了。

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Little Bear said... Reply To This Comment

seems like icap's market price is on a downward slide again. any where we can find the latest holdings of icap?

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