November 21, 2007

When I read the blog about how good is ICAP in Ah YAP, i took a few weeks to research about the company. This blog is on the research outcome.

We need to look at two sides of the coin here; just to make sure there are no two heads or tails. My research started with looking at the advantages and disadvantages of a closed-end fund in general. Since icapital.biz website overemphasized on the advantages side, you cannot really find any useful there. So, i go to Closed-end Fund Association .From a non-bias third party view, you can see what is a closed-end fund in details. Compare ICAP with other international closed-end funds, what do you understand? Please read more from the website.

After reading about closed-end fund, i go into researching about ICAP. The first thing i tried to find is the prospectus from Bursa Malaysia. To my disappointment, I cannot find any from the internet. If you have a copy, please post it here. Usually, a prospectus will contain a section called, ‘Risk Involved in Closed-end fund’. At the end of the prospectus, you will see disclaimers. Read it if you have it.

The nearest source is the annual reports. From two annual reports of ICAP, I noticed a few issues which I think, are important to highlight them here. I will show you the page to find the information, sections and excerpts.

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1. Icaptal.biz was listed 2 years ago on 19 Oct 2005. Whatever ICAP is doing, it will be under scrutinised by Bursa starting from that date only. Before the listing, ICAP self-claimed in here about the performance of Capital Dynamics without any supporting documents or evidence. No one can certify the performance of Capital Dynamics before the listing of ICAP. Since ICAP is has two years of track record only, I cannot make any good judgement about the fund. By the way, did you read the disclaimer in the website? Past performance is not an indication for future performance. See it here:


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