2019

Your Fund takes its responsibility as a corporate citizen seriously. It is committed to achieving its investment objectives through responsible corporate practices, and to improving and nurturing a more harmonious society, be it for its share owners, investors or the community at large.

 

Share Owner Value

 

By adhering to its eclectic value investing philosophy, your Fund is committed to safeguarding share owners’ long-term interest by increasing its net asset value over the long-term, within levels of risk acceptable to value investing.

 

Community Engagement and Responsible Investing

 

As a relatively small listed fund, we focus our initiatives on where our limited resources can have the greatest positive impact on the community. Therefore, we apply our corporate responsibility efforts by identifying areas where we can engage the community and encourage responsible investing.

 

Ever since the first Investor Day of your Fund was held in 2010, your Fund Manager and Investment Adviser  have been working hard in organising all the investor days, with the objective of educating the investing public on sound investing and to increase the awareness of icapital.biz Berhad among the general public. Believing strongly in the raison d’etre of your Fund that “serious long-term investing in Bursa Securities can offer superior returns”, they were not paid any extra fees for undertaking these selfless initiatives.

 

Effective 2017, the Investor Day of your Fund was rebranded as the Global Investor Week of Capital Dynamics. Capital Dynamics decided to take on a greater responsibility by becoming the main organiser of the event in order to have a greater platform to reach out to more investors and have more flexibility in organising an event of such nature, which is one of the most innovative investor events in Asia.

 

The 14th Annual General Meeting of icapital.biz Berhad

 

Held in the same format as the 13th Annual General Meeting (AGM), the 14th AGM of your Fund was made a full day event so that the Fund Manager could spend more quality time interacting with the share owners of your Fund. Other than updating the investment portfolio of your Fund and providing a macro-economy overview, this year’s special presentation by  Tan Teng Boo was titled “Politics, Democracy, Economics, Markets – Malaysia’s future. He pointed out the structural issues that Malaysia has been facing since the Nineties. Indeed another thought-provoking session.

 

The 2018/2019 Global Investor Week

 

The 2018/2019 Global Investor Week was held on 13th and 14th April 2019 at Wisma MCA and Kuala Lumpur Convention Centre. With your Fund as one of its sponsors, the 2-day not-for-profit event was a highly innovative occasion comprising many parts:  the morning talks, including a talk by YB Nurul Izzah, on Day 1; the 2019 Budding Value investor Award; and Day 2 of 2018/2019 Global Investor Week. The 2018/2019 Global Investor week was a mega scale event to conduct, especially for a company that is as small as Capital Dynamics.

 

Day 1, 13th April 2019

 

In the morning of Day 1 of the 2018/2019 Global Investor Week, the participants gained valuable insights from Tan Teng Boo and YB Nurul Izzah as they shared their honest assessment of Malaysia’s long term economic and political future. Tan Teng Boo and his team of analysts also sketched their assessment of the economies of China, the United States, the EU and Malaysia and the stock markets in China, NYSE/NASDAQ and KLSE. For the first time, Tan Teng Boo gave a talk on “New Value Investing”, where he shared his insights on how value investing fits in a new landscape featuring low inflation, low interest rates, and incessant disruption of all kinds. Most importantly, Tan Teng Boo shared the long-term exciting prospects of icapital.biz Berhad with the participants.

 

Day 1, The 2019 Budding Value Investor Award

 

Your Fund Manager and Investment Adviser are committed and determined to promoting the benefits of long-term value investing, in line with the investment objectives and policies of your Fund. They brought back the Budding Value Investor Award, a trailblazing investment competition targeting young budding investors with the aim of cultivating in them the principles of value investing and the importance of serious investing.

 

The 2019 Budding Value Investor Award was held in the afternoon of Day 1, 13th April 2019. The Award was a truly global event and it was the first time an Asian investment company has ever undertaken such a major project. It took months of preparation and hard work, and Capital Dynamics did it all by itself. The Award consisted of two stages: the first stage took the form of an essay, where the participants were required to conduct an analysis of a stock that your Fund currently owns; the exciting second stage required the finalist teams to present their investment research in person on 13th April 2019.

 

With your Fund being one of its sponsors, the 2019 Budding Value Investor Award was a not-for-profit competition that provided a platform for undergraduates to showcase their investment research and analytical abilities. Value investing is the underlying theme of this pioneering investment research competition.

 

Capital Dynamics received registrations from over 73 teams consisting of 171 undergraduates, 27 universities, 7 countries and 11 nationalities.  Six teams representing Hong Kong Baptist University, Monash University, Xiamen University Malaysia, University of Malaya, HELP University, Universiti Tunku Abdul Rahman, and the Chinese University of Hong Kong successfully made it to the final round. The team from Monash University and Xiamen University Malaysia won the Award and walked away with USD7,500 cash prize and a  3-month paid internship  with Capital Dynamics.  The judges for the final stage of the Award were Dr Lee Hon Sing, Deputy Head of Finance Department of NUS Business School, National University of Singapore, Mr Kenneth Tan, Executive Director of KESM Industries Berhad and Sunright Limited, Dr Gary Willinge,  Adjunct Professor at Curtin University, May Quah, Director of Investment at Malaysia’s leading investment institution and Mr Tan Teng Boo, Managing Director of Capital Dynamics.

 

Over 300 investors witnessed the competition and we received unanimous positive feedback on the quality of research and presentation from the finalists. Capital Dynamics is committed to making this an annual event.

 

Day 2, 14th April 2019

 

Never before has Malaysia seen an investment event on a global scale all-organised by a Malaysian company like Day 2 of the 2018/2019 Global Investor Week. Even Phoenix TV, a TV station popular in mainland China, Hong Kong, Taiwan, Malaysia, and more was overflowing with praises for Day 2 (visit https://youtu.be/ULqXriDQtss for its coverage). Capital Dynamics and its staff, even though  saddled with their usual day-to-day responsibilities, should be proud of what they have achieved here.

 

Packed with prominent speakers from China, the United States, Kenya, the World Bank and of course, Malaysia, the talks on Day 2 explored one vitally important theme: “China – a country the world needs versus a country that needs the world”. First was a talk by James Bradley, a renowned author of 4 best-selling books including “The China Mirage”. The premise of his talk was how the United States has failed to understand China, which has led to poor and often disastrous policy decisions from the US government

 

Professor David De Cremer, Provost Chair of National University of Singapore and co-author of “Huawei: Leadership, Culture, and Connectivity”, spoke on the topic, “Is Huawei a Threat to the World?” In 30 years, Ren Zhengfei has built a company that even president Trump is frightened of. From humble beginnings, Huawei is now a global company with 180,000 employees. Professor David De Cremer concluded that Huawei’s success is not a threat to the world.

 

We had Victor Gao Zhikai, former English interpreter to Deng Xiaoping and Vice-president, Centre for China & Globalisation, enlightened the participants on the importance of China’s economic strength compared with her political strength in a bi-polar global structure and Deng Xiaoping’s concept of “socialism with Chinese characteristics.”

 

In line with his tradition of being ahead of his time, Tan Teng Boo brought Professor Peter Kagwanja, Chief Executive of Africa Policy Institute from Nairobi, Kenya to the 2018/2019 Global Investor Week. In view of the importance of China-Africa relationship, Professor Kagwanja enlightened participants on the African perspective. We believe that this is the first time that an important talk of this kind has been presented in Malaysia.

 

Dr Goh Chor Ching, a Malaysian and a 20-year economist with the World Bank, covering many of the Belt and Road Initiative’s countries, explained the implications of China’s Belt and Road Initiative for the participating countries, stripped of geopolitics and hidden agendas.

Tan Teng Boo concluded the Day 2 session by enlightening the audience with his original insights into how China’s multi-faceted transformation will impact the rest of the world and how investors and businesses can benefit from the relationships between China and the world.

 

200 share owners of your Fund were shortlisted through a lucky draw and invited to attend Day 2 of the 2018/2019 Global Investor Week under the sponsorship of your Fund and Capital Dynamics.

 

Your Fund prides itself on being a conscientious corporate citizen. The launching of the Global Investor Week by your Fund Manager and Investment Adviser has become a key avenue for your Fund to implement effective corporate responsibility initiatives and help make the world a better place.