About
ICAP
icapital.biz Berhad (674900-X)
(ICAP, stock code: 5108)
is a closed-end fund listed on the Main Market of Bursa Malaysia since 2005.
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.
ICAP invests in undervalued companies which are listed on the Main Market of Bursa Malaysia Securities Berhad (Bursa Securities) and the ACE Market of Bursa Securities. ICAP has a fixed number of outstanding shares at any point in time. Like other publicly traded companies, its share price is determined entirely by market supply and demand. Similarly, shares of ICAP are bought and sold in the stock market via licensed stockbroking companies.
Even before its listing on 19 October 2005, the aim has been to increase the value of ICAP. This is achieved by adhering to a value-investing philosophy. As a value investor, investments will be selected based on their market prices and underlying values. Unless unanimously approved by the share owners, ICAP is not allowed to borrow.
HOW TO EVALUATE ICAP?
The appropriate tool to evaluate the performance of ICAP is its Net Asset Value and not by looking at its earnings or earnings per share or its profit and loss statement. ICAP's NAV is computed and released on a weekly basis to the public via Bursa announcements.
ICAP Weekly NAVWhy We Exist ?
icapital.biz Berhad exists for one simple reason:
to allow long-term shareholders or more aptly called share owners, to benefit from value investing. Investing in your Fund allows the power of compounding to work for you. If we succeed in achieving this, we would have also shown that serious long-term investing in Bursa Securities can offer superior returns.
icapital.biz Berhad's Dividend Policy, which aims to proactively narrow the gap between its share price and NAV, is subject to market and economic conditions and its value investing investment philosophy.
The design efforts for this innovative Dividend Policy were led by Mr Tan Teng Boo, Designated Person to the Fund Manager, Capital Dynamics Asset Management Sdn Bhd, in consultation with international finance experts.
The Dividend Policy is formulated as follows:
An aggregate of :
A. Base Rate: 1% NAV Per Share; and
B. Top-Up Rate: 8% difference between Share Price and NAV Per Share
NAV per share = average of four weekly NAVs before dividend payout date
Share price = volume-weighted average price (VWAP) over 4 weeks before dividend payout date
Innovative Dividend Policy
• The Top-up Rate will not apply if icapital.biz Berhad's share price is trading at parity or a premium to NAV.
• Under normal market and economic conditions, the expected dividend yield will be approximately four (4%) percent. Dividend will be paid on a yearly basis.
• The Board and the Fund Manager aim to deliver prudent dividend payouts, taking into consideration the long-term capital appreciation objective of icapital.biz Berhad, its performance, NAV-to-share price discount, the Fund Manager's value investing philosophy and asset allocation strategy, market and economic conditions and other factors considered relevant by the Board and the Fund Manager.
WHO RUNS ICAP
Set up as a company under the Companies Act 1965, ICAP is represented by its Board of Directors. The Board members are non-executive and undertake a supervisory role to ensure that ICAP operates in an orderly fashion at all times. ICAP does not have any employees. Its operations are outsourced to independent service providers. The main service providers are the Fund Manager, the Investment Adviser, the Custodian and the Fund Administrator.
The assets are managed by the Fund Manager who shall appoint a Designated Person responsible for managing the assets of ICAP, in accordance with the approved investment policies and objectives.
The assets are safe kept by the Custodian while the accounting and administrative services are outsourced to the Fund Administrator.
ICAP also requires the services of a corporate secretary, share registrar, external auditor and tax agent and has outsourced the internal audit function. The internal auditor reports directly to the Audit Committee.
There are major differences between a unit trust fund and a closed-end fund. For a copy of the report explaining these, please contact the Investment Adviser, Capital Dynamics Sdn Bhd or please visit www.icapitaleducation.biz. Though incorporated as a company, there are some differences between a normal listed company and a listed closed-end fund.
Milestones
Before 2005
How the idea came about
What Teng Boo has observed over the decades is that when a financial or economic crisis hits, individual retail investors must typically bear the brunt, although in aggregate, they as taxpayers would be the ones who would have to eventually bail out the financial system and economy.
These acute observations have made a huge impression on Teng Boo and have had a transformative impact on his life and career. Viewing this asymmetric fact of life as unfair, Teng Boo has early on resolved and made it the mission of Capital Dynamics to help society's underdog, the individual retail investor, in an area where his contributions can have the greatest positive impact on society - investing.
As many potential investors were unable to meet the threshold to access Capital Dynamics' fund management service, icapital.biz Berhad, a fund for ordinary investors was set up so that their hard-earned money can be properly managed.
2005
Initial Public Offering (IPO) of icapital.biz Berhad
The listing of icapital.biz Berhad in October 2005 itself was a culmination of a lot of hard work and heart work. The whole exercise took 3 long years because it was difficult to convince a custodian and investment bank who hardly understood what a closed-end fund was and was not confident that the IPO of icapital.biz Berhad can succeed. Eating dinner at 12 midnight became a prolonged routine affair.
For investors of icapital.biz Berhad to realise the highest return, expenses for the IPO were kept to the minimum from Day 1. Expenses for conducting roadshows nationwide amounting to RM400,000 were absorbed entirely by Capital Dynamics. Teng Boo and his team raised over RM230mln for the IPO single-handedly and was entitled to a RM1.8mln of private placement fee which they chose to forgo every cent.
Despite local stock market conditions that were not buoyant, the offering was heavily oversubscribed. Together with other investor protection measures like a black and white IPO prospectus, the only one in the KLSE, resulted in the lowest IPO listing expense in KLSE's history and boosted icapital.biz Berhad's NAV. Contrary to many naysayers, icapital.biz Berhad traded at a premium on its first day of listing.
2006 - 2008
Premium Trade
As a matter of fact, till the year 2008, icapital.biz Berhad continued to trade at a premium.
11 Oct 2007
ICAP's NAV and Share
ICAP's NAV more than doubled from 0.91 when it first listed to 1.91.
2010
Investor Day of icapital.biz Berhad
As part of icapital.biz Berhad's corporate responsibility efforts, we have reached out to the community through investment education, choosing to host Investor Day, a not-for-profit event open to both our share owners and the investing public, be they budding value investors or retirees seeking more prudent investments for their old age. Investor Day is Asia's most innovative investment event.
2012
Budding Value Investor Award
The Budding Value Investor Award ("BVIA") is Asia's first and only global investment research competition to encourage undergraduate and diploma students to acquire knowledge of value investing and the benefits it offers. The competition is sponsored by Capital Dynamics and icapital.biz Berhad.
3 Aug 2012
Tripled ICAPS's NAV
ICAP's NAV more than tripled from 0.91 when it first listed to 2.75.
7 Oct 2013
First Dividend
The distribution of a 9.5 sen special dividend per share less 25% tax for the financial year ended 31st May 2013 was paid on 7th October 2013 to entitled shareowners. The entitlement date for the special dividend is 19th September 2013.
This is the first dividend since the listing of icapital.biz Berhad on 19th October 2005, and came as a pleasant surprise to most investors.
Though not mandatory and after careful deliberation, the Board decided to declare this special dividend so that the tax credits under Section 108 of the Income Tax Act 1967 could be utilized before expiring at the end of 2013.
30 May 2020
ICAP's NAV and Share
icapital.biz Berhad organised a virtual talk for all investors, including share owners, on the economic measures taken by the major countries to counter the impact of COVID-19.
During the virtual conference, participants were briefed on the impact of these measures in supporting the relevant economies, whether the countries afford these unprecedented measures and whether the global economy will witness another Great Depression.
7 October 2021
ICAP's NAV Quadrupled
ICAP's NAV more than quadrupled from 0.91 when it first listed to 3.71.
ICAP's NAV more than quadrupled from 0.91 when it first listed to 3.71. ICAP's NAV more than quadrupled from 0.91 when it first listed
31 December 2021
Special COVID-19 Relief
A special COVID-19 relief dividend of RM0.20 per ordinary share was paid on 31 December 2021.
February 2022
Empowering Our Youth
To empower our youth, Tan Teng Boo shared his research on the impact of climate change with the students at HELP University Malaysia in the Post Pandemic Investment Opportunities Forum organised by the Business Student Committee (BSC) of HELP University Malaysia in collaboration with the Chartered Financial Analyst Society Malaysia and Capital Dynamics.
Our youth ought to be aware of the dire state of our mother earth and how their future will be affected by the worsening impact of human-induced climate change. Teng Boo also provided invaluable investment advice to the students as they start their investment journey.
2 March 2022
Community Engagement
As part of icapital.biz Berhad's community engagement effort, Teng Boo shared his business and investing insights with more than 300 CEOs and senior managers on the importance of implementing strategies for the long-term in a free-for-public webinar organised by Vistage Malaysia. In his webinar entitled "Turning Crisis into Opportunities", Teng Boo advised the CEOs and senior managers to be long-term focused and to ensure sufficient margin of safety in managing their businesses.
November 2022
Educating and Empowering Students
In line with icapital.biz Berhad's objective of educating and empowering the students with proper investing knowledge, ICAP's Investment Adviser, at its own effort and costs, chose to reach out to the students by distributing their flagship investment publication, iCapital, on a weekly basis to about 17 major universities in the Klang Valley.
The initiative is well received by the said universities. Some lecturers are using iCapital as their teaching material; students found reading iCapital extremely useful as it enhances their understanding and mastery of the knowledge from their classes.
23 November 2022
Investment Talk
One of ICAP's Directors, Ms Tan Mun Lin, offered her insights on why buy-low-sell-high does not work in the stock markets in an investment talk organised by the University of Nottingham Malaysia's Investment Club. The students showed great interest in the investment talk by participating actively in an interactive question-and-answer session.
30 March 2023
Pertinent Advice
In another well-received panel discussion organised by the same Investment Club, Tan Teng Boo shared pertinent advice with the students on how they should navigate their investments during times of uncertainty.
1 August 2023
iCapital Talent Show
For the first time ever, iCapital Talent Show was organised where the best and the brightest performances from university students are featured. The objectives are to promote and raise awareness regarding investment and value investing among the young generation/university students and to provide opportunities for them to showcase their talents and build their confidence in their field of expertise.
Students from more than 20 universities from all over Malaysia submitted their performance videos in Stage 1. However, only 20 finalists were selected to compete in the Grand Finale. They consisted of students from University Malaya, Tunku Abdul Rahman University of Management and Technology, UCSI University, Universiti Geomatika, Institut Pendidikan Guru (IPG), Sunway University, Asia Pacific University, Monash University, Al-Bukhary International University, and University of Nottingham. A total prize of RM22,000 was divided into individual and group categories.
7 August 2023
"Investing versus Spending"
The research team of icapital.biz Berhad had the pleasure of sharing an introductory session on "Investing versus Spending" with the students from Tunku Abdul Rahman University of Management and Technology (TAR UMT). In this session, students were introduced to the wonder of compound interest and the exciting investment opportunity in icapital.biz Berhad.
17 August 2023
"ICAP's Share Tripled"
ICAP's share price more than tripled from 0.91 when it first listed to 2.80
29 September 2023
"Innovative Dividend Policy"
The Board of Directors of icapital.biz Berhad announced that the Fund is introducing an innovative Dividend Policy based on the Fund's Net Asset Value (NAV) and NAV-to-share price discount.
The Dividend Policy is formulated as follows: an aggregate of (A) Base Rate of NAV plus (B) Top-Up Rate of NAV-to-Share Price discount (as defined) below: -
(1) 1% of NAV per share ("Base Rate"); and
(2) 8% of the difference between the share price and NAV per share of the Fund ("Top-up Rate").
The Top-up Rate will not apply if the Fund's share price is trading at parity or a premium to NAV. Under normal market and economic conditions, the expected dividend yield will be approximately 4% percent. Dividends will be paid yearly.
27 December 2023
"ICAP Fan Club"
ICAP Fan Club, the first corporate fan club in Asia Pacific, was approved by The Registry of Societies Malaysia. For more info and to join, visit icapfanclub.com