Maklumat lanjut mengenai Valuecap Sdn Bhd ~malaysiakini

Information Sharing - About ValueCap Sdn Bhd‏

The additional RM5 billion that the government is injecting into Valuecap Sdn Bhd is a strong signal to investors that the market is severely under-valued. The timing is good. Everything is really dirt-cheap now (stocks).

The timing now (Oct 2008) is quite similar to when the fund was first started in 2002to 2003... during the SARS period when markets were hit badly then too. That’s when it’s a good time to start buying.

For an investor, especially a long-term investor, to quote from Warren Buffet — be greedy when people are fearful, and be fearful when people are greedy. What’s important and now (Oct 2008) is the time. Be a contrarian, it may make sense to start picking up stocks now (Oct 2008) as prices have dropped substantially. There is a lot of value to pick up out there.

The additional funds injected into Valuecap should flow into the market. In a way, it would give the local bourse positive support. Established in 2002, Valuecap — the brainchild of Second Finance Minister Tan Sri Nor Mohamed Yakcop — was created to invest specifically in the Malaysian equities market.

Its shareholders are Khazanah Nasional Bhd, Permodalan Nasional Bhd and the Pensions Trust Fund Council. There is little public information on the stocks that Valuecap has invested in. Information on its investments is only known through annual reports of companies they have invested in.

However, based on filings with the Companies Commission of Malaysia, Valuecap is very much in the black despite the bearish stock market. As of Dec 31, 2007 it had total assets worth RM7.56 billion and posted an after-tax profit of RM1.1 billion for the year.

As for returns to its shareholders, it has been reported that since its inception to September 2007, Valuecap had paid out a total of RM135 million in dividends. Nevertheless, based on industry information obtained, Valuecap is believed to have about RM4.9 billion worth of investments in 70 companies currently (Oct 2008).

These companies are from a variety of segments and include the YTL Group, the IJM group, Malayan Banking Bhd, Hong Leong Bank Bhd, Public Bank Bhd, Tenaga Nasional Bhd, Malaysian Oxygen Bhd, Amway (M) Holdings Bhd and PLUS Expressways Bhd.

The list also shows that Valuecap has interest in Real Estate Investment Trusts (REIT) such as Axis REIT and Quill Capital Trust REIT. (See table) Meanwhile, an exchange-traded fund launched January 2008 by Valuecap’s wholly owned subsidiary, i-Vcap is feeling the effects of the sharp drop in equity prices.

The MyETF Dow Jones Islamic Market Malaysia Titans 25, an exchange-traded fund established in Malaysia, was valued at RM488.28 million (net-asset value of 58.9 sen per unit) on Oct 17 2008, down 40% from its initial value of RM814.6 million (NAV of 93.523 sen per unit) on Jan 28 2008.

The fund, which was billed as the first syariah-compliant exchange-traded fund in Asia, tracks a benchmark index which has fallen 42% for the same time frame. The fund’s baskets of investments include blue-chip stocks such as Sime Darby Bhd, IOI Corporation Bhd, Gamuda Bhd, KNM Group Bhd and TM International Bhd.

At the fund’s launch, i-Vcap CEO Zainal Izlan Zainal Abidin said the goal of the fund was to allow government-linked investment companies to reduce their direct exposure to the shares. It is unclear whether the parent company, Valuecap, will be adopting this scheme to invest the RM5 billion from the government indirectly through the MyETF fund or if it would go directly into the market.

Companies Invested By ValueCap ... UAC, Amway, MBM, HumeInd, PPB, IOI Prop, KLCC Property, Petronas Dag, YTL, Cement, Uchi Tech, ChinTeck Plantations, United Plantations, Star, JTI, BStead, Bintulu Port, Shell, BAT, AXIS REIT, QUILL Capita Sime Darby Bhd, IOI Corporation Bhd, Gamuda Bhd, KNM Group Bhd and TM International Bhd.

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