ICAP (5108) Overview - ICAPITAL.BIZ BHD

I have been a “student” of the stock market for more than 50 years. Over the decades there are a few lessons from investing that I have learned which are very precious and timeless in importance.

The more experience I gained, the more I analyse the situation, the more convinced I am that the quality of investors matters a great deal as to how a company performs and develops. In fact, the quality of investors matters even to the quality of a country’s capital market and economy.

Berkshire Hathaway, a huge US conglomerate, is owned by a large group of very committed long term value investors. Warren Buffett likes to hold large amounts of cash in his Berkshire Hathaway.

The already large pile of cash at Berkshire Hathaway then jumped from the previous record of US$189 bln, set in the first quarter of 2024 to a huge US$276.9 bln in the last quarter.

Warren Buffett’s Berkshire Hathaway has so much cash that it presently holds more short-term US Treasury Bills than the US Federal Reserve does and he is no hurry at all to invest the cash holdings and his fellow shareholders are not harassing him.

The reason why I am sharing the massive cash hoard of Berkshire Hathaway in this annual report is that Warren Buffett has been doing this cash hoarding for a long time now. It is nothing new. The amazing thing is not the huge amount of cash held by him, a well-known fact, but that his shareholders do not harass him about this.

In the case of icapital.biz Berhad, it has not been as fortunate as Berkshire Hathaway. Ever since a large activist foreign voter and its collaborators came in, your Fund and its Designated Person have been incessantly harassed by this bunch, even though the reason why Warren Buffett has so much cash and why your Fund had a large amount of cash was for the same exact reason – stock over valuation and the lack of margin of safety.

i Capital.biz Berhad 2024 Annual Report

3 weeks ago

Aiyoyo,
Look at the portfolio in icapital, are those value stocks?

Do he feel ashamed everytime trying to compare with Warren Buffet?

Did Warren Buffet unashamed selfishly collecting management fees from managing Berkshire Hathaway?

If you invested USD 1,000 in Berkshire Hathaway in year 2005 what will it worth by 31 may 2024?

Since its listing on 19 October 2005, based on the Artificial measurement, the share price of your Fund has risen from RM1.01 to RM3.16 by 31 May 2024. This represents a gain of 256.14%.

3 weeks ago

Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$â¬Â£Â¥

Icapital is lucky to be listed in Malaysia.
If it was listed in US most likely the shareholders already voted out TTB long ago for lack of vision and poor performance.

3 weeks ago

Capital Dynamic and iCap should focus on managing its funds for their shareholders and not spend too much time organising too many unrelated or distantly related activities.

3 weeks ago

Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$â¬Â£Â¥

ICIVF
1 July 2009 to 31 August 2024

Benchmark .... Currency .... 01 Jul 2009 .... 31 Aug 2024/Total Return ... % Change
ICIVF .... A$.... 1.0000 .... 1.1911 .... 19.11
MSCI ACWI .... A$ .... 306.1537 ... 1228.7100 .... 301.34
ASX200 .... A$ .... 3874.00 .... 8091.9000 .... 108.88

Tan Teng Boo
Managing Director
Capital Dynamics (Australia) Limited
AFSL 326283
12th October 2024

3 weeks ago

Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$â¬Â£Â¥

Warren Buffett, Charlie Munger and Jack Bogle opined the know nothing investors become an intelligent investor when he/she chooses to park his investment money in a low cost index fund, betting on the overall US stock market.

3 weeks ago

Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$â¬Â£Â¥

Why do you invest?

A simple benchmark is to have a return better than the risk free interest rate.
Perhaps, 2x that of the risk free interest rate.

Why do you invest into a fund?

Believing that the chosen fund manager has the ability to deliver a good return over the long term.

What is the long term return of ICIVF?

After 15 years (2019 - 2024), ICIVF [i Capital International Value Fund (ARSN 134 578 180)] delivered a total return of 19.11% to its shareholders (that is, 1.274% return per year).

What are the possible reasons for such poor performance of ICIVF?

3 weeks ago

Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$â¬Â£Â¥

>>>
I have been a “student” of the stock market for more than 50 years. Over the decades there are a few lessons from investing that I have learned which are very precious and timeless in importance.

The more experience I gained, the more I analyse the situation, the more convinced I am that the quality of investors matters a great deal as to how a company performs and develops. In fact, the quality of investors matters even to the quality of a country’s capital market and economy.
>>>
>>>
The reason why I am sharing the massive cash hoard of Berkshire Hathaway in this annual report is that Warren Buffett has been doing this cash hoarding for a long time now. It is nothing new. The amazing thing is not the huge amount of cash held by him, a well-known fact, but that his shareholders do not harass him about this.
>>>

Shareholders agitation is related to fund performance.

3 weeks ago

Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$â¬Â£Â¥

After 15 years (2019 - 2024), ICIVF [i Capital International Value Fund (ARSN 134 578 180)] delivered a total return of 19.11% to its shareholders (that is, 1.274% return per year).

What are the possible reasons for such poor performance of ICIVF?

Could it be one of the reason is TTB sleeping on the job?

3 weeks ago

JohnDOugh maybe able to shed more lights.

3 weeks ago

Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$â¬Â£Â¥

Sleeping on the job and still getting well paid is one of the best job one can hope for.
Kudos to TTB

2 weeks ago

FastMoney666

It is well known that the Fund Manager has been bearish from 2013 - 2018 with cash holding between 50-68% cash.

His justification was scooping up dirt cheap stocks when it is crash like 2020 to achieve superior CAGR of 15-18%. Is it true?

2013 NAV 211 mln/cash 107 mln/Investment(non-cash) 104 mln

2024 NAV 377 mln/cash 52 mln/Investment(non-cash) 318 mln.

For the 11 years using this strategy CAGR return was only 5.2%.

Assuming the reduction of 54 mln cash was deployed into investment, his 158 mln(104+54) turning into 318 mln, non-cash CAGR return is only 6.5%

So what is the problem here?

Every finance student must know this, the basis of evaluating any investment, must exceed this bar to be adding value. So if the fund manager is talking about X% IRR or whatever the figure, the equivalent non cash portion of the assets must earn an extra X% to make up for the zero returns from the cash, which is not earning much after paying management fees. If you have only one leg to stand on, it must be twice as strong to support the whole body weight then, such simple logic.

BTW, if his strategy was working, NAV should have grown from 211 mln(2013) to 983 mln(2024) with 15% CAGR.

Assuming he started to invest aggressively in 2018 at NAV 229 mln, to hit 983 mln, needs CAGR of 27% for 6 years to make up the lost time. He needs to increase NAV by 754 mln within that 6 years not 142 mln... his CAGR of scooping at dirt low price with a lot cash from 2018 till 2024 was disappointing, only manage to return 8.2%.

2 weeks ago

FastMoney666

It's works for WB by holding a lot of cash but it does NOT work for fake WB of Msia is my conclusion.

2 weeks ago

FastMoney666

I hope that was his last posting on sitting on tonnes of cash to produce superior returns to avoid embarrassment and mislead people. People know how to use financial calculator these days. 😂😂

2 weeks ago

Few will disagree the return on your investment is proportionate to the amount of effort, focus and concentration you give to managing the portfolio.

Unfortunately, from observing the growth of Capital Dynamics, this might not be the case. Why? There are so many distractions. Launching new funds. Organising various seminars and symposiums at regular intervals. These are definitely consuming valuable times.

2 weeks ago

Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$â¬Â£Â¥

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$â¬Â£Â¥ > Oct 17, 2024 1:20 PM | Report Abuse

Few will disagree the return on your investment is proportionate to the amount of effort, focus and concentration you give to managing the portfolio.

？

Prof. i3 why a don't take care of mikecyc who is your student?

2 weeks ago

Peter Lynch is a strong advocate for the bottom up approach, tending to focus on the company fundamentals (quality) and its valuation. He feels that spending more than 10 minutes on macroeconomic issues is 10 minutes of time poorly spent.

It is my observation that iCap newsletter prides itself on understanding and analysing the various macro-economic factors in various countries and various sectors. Alas, it is also my humble observation, that these huge effort in macro-economic issues contributed little to the performance of its managed funds. Perhaps, time maybe better spent focusing on screening companies.

2 weeks ago

Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$â¬Â£Â¥

The new 2% tax on those receiving > RM 100,000 yearly dividends: dividends from closed end fund are exempted.

2 weeks ago

MG9231

@ integrity , Intelligent ....
Why do you invest?

A simple benchmark is to have a return better than the risk free interest rate.
Perhaps, 2x that of the risk free interest rate.

Why do you invest into a fund?

Believing that the chosen fund manager has the ability to deliver a good return over the long term.

What is the long term return of ICIVF?

After 15 years (2019 - 2024), ICIVF [i Capital International Value Fund (ARSN 134 578 180)] delivered a total return of 19.11% to its shareholders (that is, 1.274% return per year).

What are the possible reasons for such poor performance of ICIVF?
%%%%%%%%%%%
Reason: fund manger TTB spent his time more on talk cock rather than concentrate on manging his fund

2 weeks ago

zhangwin

Icap dividend > RM1000,000 is subject to 2% tax. Only unit trusts (open ended funds), PNB funds, EPF and foreign div are exempted.

@ Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$â¬Â£Â¥ > Oct 19, 2024 9:47 AM | Report Abuse

The new 2% tax on those receiving > RM 100,000 yearly dividends: dividends from closed end fund are exempted.

2 weeks ago

zhangwin

RM > RM100,000

2 weeks ago

chonghai

TTB should just shut up and focus on deliver NAV Compound. If he can compound it at CAGR of 15% or more, London or New York boys are not a threat at all. In fact, shareholder will probably pray that he lives forever and continue manage the fund. I collect ICAP past 1 year from 2.5 to 3.2. I am waiting to see the if the fund will be dissolved and give us a quick return of those NAV

2 weeks ago

I cap, mati law with 2 heliridends taxes
Kena tax Kaw kaw。How?

2 weeks ago

ScotFree

He is just a fake, trying to imitate WB. Just go and drive GRAB lah... entertaining his passengers lol

2 weeks ago

enigmatic [bamboo investing style]

In this world only got one and only one WB. All the others WB wannable are fake.

2 weeks ago

chopstick

as for me, , i just finish my happy hour, just google who 's life is so boring, facing i3 platform whole days, nothing much u can do

2 weeks ago

chonghai,
Probability for this Closed-End Fund to dissolve is highly impossible. Many shareowners would want its continuance until the Designated Person passes on.

2 weeks ago

As I have shown above, what is even worse than the harassment is that this large activist foreign voter and its collaborators have bashed the shares of your Fund, just like Slater Walker did with Haw Par.

This bashing has huge detrimental impact on your Fund and more importantly on the development of a closed-end fund industry in Malaysia. The same group of activists has previously wound up another listed closed-end fund, Amanah Millenia Fund in 2007.

Unlike other listed Funds or listed companies, icapital.biz Berhad was intentionally set up and promoted by myself with a unique objective on top of a social mission.

The objective was not just narrowly financial but it also was broader and to demonstrate that sound long-term investing by individuals can work in Malaysia.

Achieving such a long-term social economic objective is an important part of nation building and can bring about many positive contributions to the development of this young country and its capital market.

It can also help bring about a better society. While Lee Kuan Yew wanted to make sure that Slater Walker did not destroy Singapore’s reputation as a global financial centre, successfully building icapital.biz Berhad is to me very similar to building a better Malaysia.

We have worked very hard and with our heart to attract and maintain high quality share owners in icapital.biz Berhad. We still have a very long way to go in this daunting journey. As your Fund’s Designated Person, I truly envy the highly favourable and positively constructive situation Warren Buffett is in with his Berkshire Hathaway.

i Capital.biz Berhad 2024 Annual Report

2 weeks ago

Just wonder had TTB give any thought why icapital or rather TTB failed to acheived the objective?

Is it because of large activist foreign voter and its collaborators have bashed the shares of your Fund?

Or because TTB can't even acheived his low bar of doubling your money within 5 to 8 years?

2 weeks ago

People exits from I cap?

2 weeks ago

chonghai

If TTB can compound ICAP NAV even at a rate of 15% per year, no bashing will work.

2 weeks ago

ScotFree

Ttb is comparing himself as the next Lee Kuan Yew

2 weeks ago

Najib Zamry

TTB keeps his words. 10.41 sen dividend declared. 3.4% dividend yield. Not bad ya

1 week ago

Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$â¬Â£Â¥

Under the written procedures established by ICAP pursuant to the Securities Industry (Central Depositories) (Foreign Ownership) Regulations 1996, foreigners who hold Shares which are within the prescribed limit of 20% of the total number of issued Shares ("Prescribed Limit") shall be entitled to the Interim Dividend and are entitled to participate in the DRP provided that such participation will not result in a breach of the Prescribed Limit.

I read the above remarks from the yesterday dividend announcement.

I have a few questions:
Meaning COL needs to dispose their shareholding to below 28m in order to entitle for the dividend and DRIP?
As on 21st Oct, they still have 30.8m, they need to dispose another 2.8m shares in the next few trading days?
Then we better don't rush in to buy now, as the share price could go further down?
What if COL could not dispose to below 28m shares, will they sue ICAP/TTB?
Who is going to pay for the legal fees then? ICAP or TTB?

1 week ago

All shareholders have equal entitlements.

1 week ago

That is what ICAP said, foreigners have equal right provided they hold not more than 20%.
And it look like COL try to bring down their holding to 20% or less.

1 week ago

Is TTB now saying he paid COL the 2021 dividend by mistake?
Can someone ask TTB to file a legal claim to COL to pay back the 2021 dividend?

Ann. Date
Ex Date
Type
Subject
Amount
22-Oct-2024 05-Nov-2024 DIVIDEND Interim Dividend (with Dividend Re-Investment Plan) RM 0.1041
18-Nov-2021 17-Dec-2021 DIVIDEND Special Dividend RM 0.2000
22-Aug-2013 17-Sep-2013 DIVIDEND Special Dividend RM 0.095

1 week ago

In my commentary in last year’s annual report, I gave my positive outlook on Malaysia. Briefly, I wrote that from a macro viewpoint, “Malaysia’s domestic political development has entered a new stage, one which I think heralds better political governance, promises a better and stable government and hence a better Malaysia.

With Malaysia blessed as a country with great and plentiful human talents, the anticipated new era will give birth to a country which will once again be on the right path of fulfilling her potential. I expect the Malaysian stock market to be a beneficiary.”

Then, in my talk on 5th November at the 2023 Investor Day, I forecasted that the KLCI would reach 2,500 to 3,000 points in the next three to five years. Nearly one year later, my longer-term bullish views of Malaysia and her stock market have remained the same.

With this, it is very timely for me to remind share owners about a very important principle on compound return. Investors are told it is never wrong to take a profit. Charlie Munger has a simple answer for this question.

“The first rule of compounding: Never interrupt it unnecessarily” - Charlie Munger

His advice is one of the most important principles on successful investing. Investors should not interrupt that compounding lightly. The combination of Malaysia entering a better era, icapital.biz Berhad invested in more stocks and a high quality share ownership structure can produce a very exciting future for your Fund’s NAV and share price.

Do not interrupt the compounding of your investment in icapital.biz Berhad.

Finally, let us remember what Lee Kuan Yew warned about Slater Walker. Let us all ensure that another British investor now does not destroy icapital.biz Berhad, a budding role model for Malaysian individual investors, and other companies listed on Bursa to emulate.

i Capital.biz Berhad 2024 Annual Report

1 week ago

"Self-praise is for losers. Be a winner. Stand for something. Always have class, and be humble." - John Madden

1 week ago

The director emoluments must be based on fund performance.
You must follow Warrant Buffalo fees charges for his fund.
Why can’t follow????

1 week ago

But the Expense Ratio of Open End Unit Trusts / Mutual Funds in Malaysia also around 2%.

1 week ago

Would someone pump up the ex-dividend price, otherwise look at the current market price, who wants to opt for DRIP?

1 week ago

Patient Investor

It doesnt matter if no one will participate in DRP. if there's no participation, the fund size shrinks and less liquidity, thats all. Berkshire-A shares don't split because they don't want too many trading activities on it.

6 days ago

Fund manager will receive less fee if the fund size shrinks.
However, I think TTB is a professional manager, he could have set the exercise price with huge discount so that certainly almost all unitholders would opt for DRIP.

6 days ago

Most of the ASEAN economies are performing well (with Thailand being the exception). Besides, Vietnam, Thailand, Indonesia, Cambodia and Singapore have all recently seen stable political changes.

Given such positive trends and responsible societies, should the ASEAN stock markets, including that of Malaysia, not be trading at a premium to those found in conflict-torn areas like Europe and Britain ?

The same principle applies to the share price of icapital.biz Berhad. It should be trading at a premium or at least without discount.

Should the present large foreign investors allow the stock price of icapital.biz Bhd to trade without any interference, the discount of your Fund will disappear at a faster pace and its stock price will then be able to trade at a rational level earlier than otherwise. Your Fund, like Malaysia or ASEAN, has yet to be understood and appreciated.

I would like to share two useful quotes from Charlie Munger with our shareowners:

“People calculate too much and think too little.”

“The big money is not in the buying and the selling, but in the waiting.”

i Capital.biz Berhad 1Q2025 Report

2 days ago

Thinking is not enough you need to put your thought into calculation or paper to get a clearly picture.

Only loser or those cannot perform or did not perform will quote below in the self fallacy if you wait long enough your stocks will start to perform.
“The big money is not in the buying and the selling, but in the waiting.”

2 days ago