Tuesday, 13 September 2016

iCapital: "Ostrich policy" will not solve the issues (3)

Last year I wrote two articles about iCapital's annual report, here and here.

iCapital published its new 2016 annual report, and I am sorry to say, it is even worse.

This time there is no mentioning at all of the large discount of the share price versus its NAV price, which is a rather common problem of Closed End Funds (CEFs) and also to shareholders of iCapital.

The last quoted NAV is RM 3.13, its share price is RM 2.34 for a rather large discount of 25%.

Also, again there is no proper reporting how iCapital performed the last 3 or 5 years, something that is completely standard for unit trust funds.

Interestingly, there might be hope for shareholders of iCapital. Bursa has published a "Proposed review of the framework for collective investments schemes", which includes CEFs.

Feedback can be given until September 19, 2016.

Hopefully next year iCapital will be forced to give a much more comprehensive account of its performance and other matters according to the new Bursa framework.

Strange that it had to come to this, surely iCapital as a licensed fundmanager with a long history should have revealed all the extra information on a voluntarily basis. And if it didn't, then the Board of Directors should have stepped in. Both the fundmanager and the Board of Directors must have known about the proposed framework and the additional information that would be requested.


  1. Not walking the talk..so claim the Malaysia Warren Buffet ??? Controversial also on the fund management fee...

  2. Investors of closed end funds needs to realize that numbers should not be the deciding factor when one invests in a fund. TRUST of the fund manager is just as importance. iCapital.biz and the arrogance of its fund manager highlights what happens when one discount the fund manager of the fund when investing. Just like investing in a Chinese red chip stock. Can one trust the numbers provided by the Chinese red stock which trades with a PE of 1?