“There is a fair bit of undervalued stocks on Bursa Malaysia and they are attractive,” says Capital Dynamics Asset Management Sdn Bhd Managing Director Tan Teng Boo.
Tan declined to disclose the fund’s stock selection, but stressed that his investment strategy focused on individual stock, instead of specific sectors.
“We are looking at all kinds of stocks. Our aim is on the booming sectors but if the stocks are overvalued, we will avoid them,” Tan told a media briefing on the performance of iCapital.biz yesterday.
Asked on the outlook for Bursa Malaysia, he said: “We don’t really focus on the projection of the benchmark FBM KLCI, but we believe that the local bourse is still trading at an attractive valuation.”
In the financial year ended May 31 (FY2010), iCapital.biz made a number of purchases. A new investment during the year was Malaysia Smelting Corp Bhd. The fund also bought additional shares in Boustead Holdings Bhd, Suria Capital Holdings Bhd and Tong Herr Resources Bhd.
Tan. Photo by Mohd Izwan Mohd Nazam
To date, iCapital.biz has invested in 12 listed companies, with Integrax Bhd, Parkson Holdings Bhd, Suria Capital, Boustead and Padini Holdings Bhd leading the list, in terms of the number of shares held.
In terms of market value, Parkson Holdings, Fraser & Neave Holdings Bhd, Boustead, Petronas Dagangan Bhd and Padini Holdings Bhd were the top five stocks in its portfolio as at June 16.
As at May 31, the closed-end fund invested RM128.7 million in stocks with a market value of RM188.26 million, giving unrealised gains of RM59.5 million.
For FY2010, iCapital.biz’s net asset value (NAV) per share rose to RM2.10 from RM1.77, represent a gain of 18.6%. Meanwhile, its NAV per share has grown 112% from 99 sen since the fund was listed in October 2005, to RM2.10 as at May 31.
This article appeared in The Edge Financial Daily, August 17, 2010.
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