Funny, everything is publicly listed, why the need to resort to impairment?

Why can't they operate like unit trust or etf where nav reflect latest market price.

This is the difference between closed ended fund compared to those ordinary opened ended one.

Closed ended fund is depended on the market force to dictate the price, as there is no redemption taking place when investors want to divest time, by rely on open market buyer willingness to buy the share.

Impairment in the accounting is just wanting to reflect whatever situation as closed as the actual situation out there.
It is about accounting practice.

Does that mean that NAV provided weekly does not sync with asset and liability of fund due to how profit and loss is accounted for?

I would imagine that NAV = assets - liability

If the assets are based on historical price or what is considered fair price rather than latest market price, won't there be a divergence between NAV and what you would get if you liquidate all assets at market price and pay off all debt?

Why resort to this when everything is transparent on stock market unless you want to take the average market price of share over a a time period (e.g. a year)?

20% below NAV

Can see but cannot touch... not unless TTB.. retires.. 

Can see but cannot touch... not unless TTB.. retires.. 

You can touch if majority of the shareholders vote for liquidate the fund. 

Many have tried and fail.. TTB.. have many macai to support him. 

Many have tried and fail.. TTB.. have many macai to support him. 

The bulk of the NAV – about 66.52% or RM260mil – is in the form of cash because the fund has not been able to find “value stocks” and has had a bearish view of the markets more than a year ago.

icapital.biz’s portfolio comprises Boustead Holdings Bhd, Padini Holdings Bhd, PI Industrial Bhd, Suria Capital Holdings Bhd, Fraser & Neave Holdings Bhd, Malaysian Smelting Corp Bhd, Tong Herr Resources Bhd, Vitrox Corp Bhd and Wellcall Holdings Bhd.

In response, the fund had said that a share buyback would destroy value for a close-end fund like icapital.biz. “Cash is raw material for icapital.biz. The more the shares repurchased, the lesser the capital or assets available for investments to generate capital appreciation which would lead to higher NAV growth,” said Tan Teng Boo, the designated person for icapital.biz.

Over the years, I have met with many investors, locally and abroad, young and old, retail and institutional, students
and CEOs, salaried and very wealthy, educated and uneducated and more. In the course of meeting these people,
I have often been asked what my investment philosophy is as a fund manager. When I answered that it is value
investing, I get an interesting variety of response.

Some seem to understand this time-proven investing style and after a short elaboration, they get it. After lengthy
explanations, many, including the educated professionals, the CEOs, and the institutional type, do not seem able to
grasp the idea of value. After lengthy explanations on value investing, many would still ask me when is a good time
to buy or sell. Short of fainting, I would then patiently find all sorts of examples to make the simple notion of value
investing even simpler. After all these efforts, and explaining that Warren Buffett uses value investing, many would
still ask apparently innocently, when the next bear market will start or why are you holding so much cash or worse
still, accuse me of lacking investment ideas.

The concept of value investing is really simple. However, understanding and applying this time-proven investing
style consistently is another story altogether. Value investing is about finding the intrinsic value or sustainable
earning power of a stock, a business or an asset and then buying it at an attractive price, which is always below the
intrinsic value of the stock, business or asset. Doing so provides the buyer a margin of safety, one of the central
concepts in value investing.

What is margin of safety ? If value investing is hard to understand for some people, margin of safety is even more
difficult for them. In this commentary, I hope I can make this key concept clearer.

At the time of writing this, icapital.biz Berhad still has a high cash level. The high cash level is a result of the
“Bamboo” eclectic value investing philosophy of Capital Dynamics. With the rich valuation of the stock market, it
has been difficult to find sound investment ideas at attractive prices. We have plenty of investment ideas but are
they at prices that are attractive ? An attractive price would mean that there is built in a margin of safety.
This brings us to the central principle that makes value investing such a time-tested and successful investing
method. Many of us would have read about the recent cruise ship disaster in the Yangtze River in China where
hundreds of passengers died. As a value investor, this tragedy offers precious insights and lessons about margin of
safety and risk management. While investigations are being conducted in the capsizing of MV Dong Fang Zhi Xing
(Eastern Star), a few points stand out.

At around the same time as the Eastern Star capsized, the captains of at least two other ships on the same section
of the Yangtze River chose to anchor their ships on that night after the local maritime bureau sent warnings to
expect heavy rain and thunderstorms. The passenger vessel, Yangtze Sightseer No. 6, anchored at around 9:10
pm, six miles away from the disaster. The car carrier, Changhang Jiangning, dropped anchor in order to wait out
the storm.

It was clear that the weather conditions in the Yangtze River were rough and dangerous. A safe approach, that is,
an approach with a margin of safety, was to anchor and wait for the adverse weather conditions to pass. The same
principle applies when investing in the stock markets. Like the captains of the two other ships, we know that the
prevailing economic and investment landscape is stormy. With the valuations of the stock market high and based
on forever zero interest rate, and the US monetary policy badly handled, investing now would be like the tragic
Eastern Star that did not anchor. In not anchoring, the captain of Eastern Star made the ship vulnerable to nasty
surprises as he ignored the safety margin principle. Holding a high level of cash is like anchoring our ship and
patiently waiting. We do not know when the weather conditions will get better but what we know is that sailing in
such adverse weather conditions is dangerous. A highly valued stock market, like a ship in turbulent weather
conditions, can be easily capsized by any adverse event.

In response, the fund had said that a share buyback would destroy value for a close-end fund like icapital.biz. “Cash is raw material for icapital.biz. The more the shares repurchased, the lesser the capital or assets available for investments to generate capital appreciation which would lead to higher NAV growth,” said Tan Teng Boo, the designated person for icapital.biz.

Isn't the fund objective is to buy undervalued stock?

So if Icap share price is undervalued, shouldn't be the fund also interest to own it?

So Icap is not undervalued?

Share buyback doesn't mean must cancel it out one, they can remain in company as treasury shares, which if share price rise back up time, it can be sold or cash out as well.
Sell at a profit, NAV of the fund rise, shareholders joy.

So if Icap shares indeed undervalued, buyback can be a good form of investment as well.

+1

-1

You may be right but if you have a case like icap....
Where the Boss is stubbornly arrogant and selfish...
Share buybacks won't happen.

Do check nav vs stock price a year or so ago ...
There was a discount also....
Then and now....
Icap price fell a lot..
So.,.,.

then he should not claim 1.5% management fee based on NAV, gaji buta.

Gaji buta?

Any of the shareholders make bang bang sound at agm on this matter?

See page 35, post #692
See the table how much money he collects since 2009....