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iCapital: "Ostrich policy" will not solve the issues (3) - M.A. Wind

Tuesday, 13 September 2016 
Last year I wrote two articles about iCapital's annual report, here and here.

iCapital published its new 2016 annual report, and I am sorry to say, it is even worse.

This time there is no mentioning at all of the large discount of the share price versus its NAV price, which is a rather common problem of Closed End Funds (CEFs) and also to shareholders of iCapital.

The last quoted NAV is RM 3.13, its share price is RM 2.34 for a rather large discount of 25%.

Also, again there is no proper reporting how iCapital performed the last 3 or 5 years, something that is completely standard for unit trust funds.

Interestingly, there might be hope for shareholders of iCapital. Bursa has published a "Proposed review of the framework for collective investments schemes", which includes CEFs.

Feedback can be given until September 19, 2016.

Hopefully next year iCapital will be forced to give a much more comprehensive account of its performance and other matters according to the new Bursa framework.

Strange that it had to come to this, surely iCapital as a licensed fundmanager with a long history should have revealed all the extra information on a voluntarily basis. And if it didn't, then the Board of Directors should have stepped in. Both the fundmanager and the Board of Directors must have known about the proposed framework and the additional information that would be requested.