whatta writeup!   

NOW EVERYONE CAN be a FUN manager!   

All Unit Trust Management Co (approved by SC) charge fees

everyone can be a fun manager?! are you kidding?
how many of us able to earn 200% in 8 years time (its NAV from 1.00 to 2.97 today)? I highly doubt there could be many. If 1% of forumers here can achieve that, I already super surprise.

Are you trying to blame SC for TTB's inept performance?

U get me wrong
All Unit Trust Mgt Co (UTMC) can charge management fees
Quantum wise dependent on d nature of funds and profile of UTMC

If holders r not satisfy with d UTMC, they can raise dis issue during AGM
Worst case, can propose to liquidate the funds itself

I understand that TTB has to eat and drive his porsches.

However to make wild statements of growth and yet sitting on his rear end doing not much AND collecting his fees is rather
ummmm ......obscene.

I think someone has suggested to liquidate and realise the NAV. But TTB refused, no?

Can you sell at the NAV?   

Why sell? In fact, I only use spare cash to buy stocks. These cash I prepare not using them for at least 10 years also no problem. 
Just buy back my 1st batch of icap at 2.35 today, waiting for gross dividend 9.5 sen coming soon. (I sold all my icap last time at 2.33)

not only TTB refuse, those minority shareholders also refused. They all share the same view: long term investment.
so those who buy this icap should be prepare for long term holding power, otherwise don't even touch it at all. 

Did anyone here attend the AGM? Any notes to share?

Majority of the share owners of ICAP are still happy with Mr Tan.

The overwhelming support from ICAP's shareowners are understandable as evidenced from the support TTB received during Laxey's attack.

Can elaborate some interesting contents/moments during TTB's presentation and the Q&A session?

This is a good issue to give it some thinking.

I feel that it all boils down to what prophetjul was saying.
ICAP had been sitting on too big of a cash pile for a fund.

We can argue/disagree with the importance of cash in a fund.
Some view it as war chest which will be of great importance in a crash. (I accept this argument)
Some view it as a no-no because the cash is being wasted as it is doing nothing. As a fund, it has a duty to generate return for its cash and if the fund manager is sitting on his 'rearend and still reaping off its investors withs his 'mega' manager's FEES...' then there will be some disgrunted shareholders. (But when market is soaring and the fund is not doing anything, then the fund got it all wrong. )

To qualify what prophetjul statement best we check ourselves.
Screenshot of balance sheet the past 5 years. Data provided by klse tracker.



Latest balance sheet shows cash balances has increased to 200 million. 

As we can see the issue some have is ICapital is having too much un-invested cash.

As a fund, we have to gauge the fund manager and his investing decisions and in this instance, we need to gauge the fund's decision to sit on cash.
IE is the fund manager correct to sit on cash??

No matter what the fund manager view points, by not utilizing these cash, the fund managers is TELLING his shareholders that there's nothing better to invest in and Teng Boo had been sitting on a lot of cash since 2010.
In 2010, the CI started at 1272. This year the index reached a high of 1810.

Chart below:



And iCap is sitting on excess cash during this period.

I know it's easy to critic and I feel like I am an armchair investor criticizing Teng Boo and his iCap fund but if I am going to be an investor of the fund, this type of critic/evaluation of him and his fund is needed.

How would I evaluate his fund decision to have excess cash and not putting the excess cash to use?

My evaluation would be I would grade it as fairly poor.

To check on the fees issue, I had to look at the annual report.



Two type of fees charged upon the fund.
Fund management fee and investment advisory fee. (why two?    )
They have both increased in 2012 compared to previous year. ( Should I check how much fees were charged in 2008? )

From this perspective, I have to agree with prophetjul that Teng Boo is sitting on his 'rearend and still reaping off its investors withs his 'mega' manager's FEES...'

The closed end fund is sitting on excess cash for far too long and clearly it was the wrong decision with the market hitting new highs constantly during this period. The fund got it all wrong.

Did any shareholders even ask why the fund is sitting on excess cash when the market keeps on rising in the agm? Or are the shareholders simply fans of Teng Boo who believe he can't do no wrong?

By giving out dividends is not solving things exactly.
The NAV would be readjusted and then last but not least .... what then about Teng Boo's mega annual compounding projection for the fund?
That was his promise to his shareholders.
Would that promise be attainable now?

Questions indeed.

couldn't agree more!

"Shares on Bursa Malaysia are not cheap… many stocks are overvalued at present,” icapital.biz managing director Tan Teng Boo said.

Tan revealed that the fund was currently holding around RM200mil, or about 50% of its net asset value, in cash, waiting for the right moment to enter the market to invest.

He added that it had been maintaining a high cash position for the last nine to 10 months, not only because the market was looking expensive, but also because of the surrounding domestic political and international economic uncertainties.

TTB said that the dividend payout recently was solely due to the tax credit balance.  It is one-off.  The duo listing of the fund is still on going.  When asked why the fund is sitting on a huge pile of cash, he explained that most of the counters in Bursa are rich in valuation.  He still holds on to Buffet's investment rule : Never lose money.
His presentation is mainly on macro economy of Malaysia and the America.

Thanks for your response.

What about ICAP's investment portfolio? The latest annual report didn't mention anything about the portfolio, unlike previous years' ARs. Did TTB mention why he omitted that part during the AGM? At least the info is accessible for share owners to know what ICAP has bought, hold and sold for the past one year.