icapital.biz Berhad has outperformed Bursa Malaysia once again despite turbulent times

29 April 2022, Kuala Lumpuricapital.biz Berhad (ICAP, stock code 5108), the only listed closed-end fund on Bursa Malaysia has once again outperformed Bursa Malaysia with its superior returns as reported in its latest quarterly results.


As at 13 April 2022, ICAP’s NAV achieved solid 1-year, 2-year, and 3-year returns of 9.13%, 28.94%, and 6.46% respectively (Table 1). The same goes for its share price, which generated superior returns of 21.50%, 18.50%, and 2.37% respectively (Table 1). Both ICAP’s NAV and share price have outperformed Bursa Malaysia, which returned only - 0.03%, 17.78%, and -2.02% over the said three time periods.


(Table 1)

1-Year Return 2-Year Return 3-Year Return
ICAP’s NAV 9.13 % 28.94% 6.46%
ICAP’s share price 21.50% 18.50% 2.37%
Bursa Malaysia -0.03% 17.78% -2.02%

Besides the ongoing global COVID-19 pandemic, the Ukrainian Crisis and the current pandemic outbreak and lockdowns in China, the world has been moving from one crisis to the next. Layered on this complex situation is surging inflation in the United States, the UK, the EU and many other countries. Due to a serious misjudgement of the current inflation trend, the US Federal Reserve is now in a panicky mode and has to aggressively tighten US monetary policy which will most likely push the US economy into a recession. Despite this, ICAP has performed exceptionally well.


icapital.biz Berhad has always been managed in such a way that its shareowners can sleep soundly at night, knowing their hard-earned savings are in good hands. I have also managed icapital.biz Berhad in such a way that in times of crisis or dire need, icapital.biz Berhad is there for its share owners, witness the special RM28 million Covid Relief dividend. Not only have I achieved all of the above, icapital.biz Berhad has also delivered superior returns to its shareowners and is still boasting a substantial cash- laden war chest”, said Tan Teng Boo, the Designated Person of ICAP and CEO of Capital Dynamics.


A Rare Gem

ICAP is a Malaysia-focused fund, with an objective of long-term capital appreciation based on the Bamboo value investing philosophy of Capital Dynamics. ICAP is not allowed to sell short, invest in derivatives or undertake any borrowings.


A well-managed closed-end fund like ICAP is an excellent investment product for individual investors, especially during tumultuous times like now. However, after so many decades, there is still only one listed closed-end fund on Bursa Malaysia. The London, Sydney and New York stock exchanges abound with closed-end funds. For Bursa Malaysia to have the same percentage as London for example, the Malaysian stock market should see more than a hundred and thirty closed- end funds listed, instead of just one. icapital.biz Berhad is without doubt a precious investment.


With its NAV per share of RM3.22 as at 27 April 2022, ICAP’s share price is only RM2.18. ICAP is truly a rare gem for long term investors.