If you think that the current market is sustainable at this level and are looking to invest in unit trust, you may want to have a look at ICAP (5108) closed end fund listed on KLSE.

It is a highly regarded fund and has been traded above its NAV most of the time. See chart below.



Only during the heavy selldown in equity markets end of last year, the market price crossed below its NAV.

ICAP closed at RM 1.47 yesterday (13 April 2009) against its latest published NAV of RM 1.59 as on 8 April 2009 (Icap closed at RM 1.44 on 8 April 2009). With the surge in stock market last few days, the NAV could be higher and widen the gap between market price and its NAV.





The above are historical charts how the fund outperformed the KLCI.

The transaction fee for closed end fund (is actually the cost of buying and selling the stock, about 1.2%) is lower than unit trust fund (about 5.5%).

However, closed end fund is less liquid compared to unit trust. Unlike unit trust whereby the fund management company is made compulsory to repurchase the unit, sometimes it is hard for the investors of closed end fund to get buyers at reasonable price and the gap between buyers' price and sellers' price may be more than 1 bid.

My friend like the fund manager Tan Teng Boo so much that he invested in the stock so that he could attend and listen to his market analysis at AGM.

More info at: ICAPITAL

Article from: bla, bla, bla

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Added on April 17, 2009, 5:00 pmNAV as at 15 April 09 RM 1.63

16 April 09 closing price RM 1.47

KLCI closed slightly higher on 16 April 09. Assume no change in NAV

Current share price RM 1.47 is about 9.8% discount of its NAV

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Added on August 8, 2009, 6:51 pmsome highlight of Icap AGM

http://ooibenghooi.blogspot.com/2009/08/ic...agm-080809.html

This post has been edited by benghooi: Aug 8 2009, 06:51 PM