iCapital.biz Bhd (ICAP, 5108)

Established as a closed-end fund (CEF) with 140 million shares by now, iCapital.biz 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.