Tuesday, October 23, 2012

What iCapital did last one year

The closed end fund made its Annual Report announcement last Friday. Last year was a decent year for iCap to my account, not a fantastic one. Anyway, here are some of the details.

Size of Holdings and Market Value of Holdings as at 12 Sep 2012

The transactions iCap made are as below. It basically shows that iCap did not make any purchase at all, signalling that they rather hold cash than increased positions into stocks. Cash level, hence increased.

What about performance over a longer term. It is a long term fund and the little transactions that the fund has shown to us guides that by having less transactions, they can still outperform the market substantially.

The weird thing is that despite its consistency in outperforming the market, its share price kept more and more further apart from its NAV. Why? Well, according to my mum the fund does not pay dividend. To me, it is not a problem but perhaps to many investors it is. I can see the point.

Other articles on iCap:

Why I bought iCap

ICap: An overperforming fund with underperforming price


Bn911 said...

Hi Felicity, since this fund largely invest in Petdag which is government link company, will u think share price go down due to election risk? Thx.

felicity said...

PetDag is a state-owned organization. Whoever is in charge will want PetDag to do well.

Bn911 said...

True also, just temporary will drop only. hope got chance to enter at cheaper price soon.

khengsiong said...

Somebody mention that the directors of iCap are well paid, and yet investors don't get dividend. That may be one reason its price is well below NAV per share.

Berkshire Hathaway also doesn't pay dividend, but at least Warren Buffett's salary is relatively little.

felicity said...

Hi Kheng Siong
You have a very good point. I am also thinking myself, should I be doing the investing myself rather than pass to them - and they get RM2 - 3 million in terms of fees alone every year.

However, one should understand that the industry is such. Warren Buffett is the one out of the norm. In fact, Buffett has appointed 2 fund managers recently working for Berkshire Hathaway and these 2 guys are paid decently well too.

Another thing, the managers of iCap do not own shares of the fund hence they should be paid for their performance.

On the director's fees - it is an industry standard, not overly high.