Media Release

Media Release – 15 January 2015
January 15, 2015 | Publication : ValueCAP Sdn. Bhd.

By way of background, the ValueCAP Group of companies (“the Group”) comprises ValueCAP Sdn. Bhd. (“ValueCAP”) and its two wholly-owned, licensed fund management subsidiaries namely VCAP Asset Managers Sdn. Bhd. (“VCAM”) and i-VCAP Management Sdn. Bhd. (“i-VCAP”). ValueCAP is equally-owned by Khazanah Nasional Bhd., Permodalan Nasional Bhd. and Kumpulan Wang Persaraan (Diperbadankan). Broadly speaking, the Group is principally involved in the business of investments in listed securities on Bursa Malaysia.

Since the commencement of its operations in 2003 and up until recently, ValueCAP had conducted proprietary investments – i.e. investments of its own monies, in marketable securities listed on Bursa Malaysia, as mandated by its shareholders. Initially funded by borrowings of RM5.1 billion from its shareholders, ValueCAP’s investment activities was boosted by a RM5.0 billion term loan from the Employees Provident Fund in 2009. At its peak, ValueCAP’s investments grew to over RM17.2 billion in size in 2010.

From a portfolio performance perspective, on an annualized basis, ValueCAP’s investments relatively outperformed the market by more than 5% when benchmarked to the broad FTSE Bursa Malaysia Top 100 Index (“FBM100”) over the period from 2003 to 2012. On a cumulative basis, those investments relatively outgained the benchmark by over 160%, having risen significantly of over 300% versus the FBM100’s 167.9%. By way of comparison, the FTSE Bursa Malaysia KLCI rose 165.7% over the same 10-year period. Astute management of these investments allowed ValueCAP to over time generate profit of approximately RM8.3 billion on the back of RM12.1 billion revenue since its inception. As a result, its shareholders’ equity rose to peak over RM7.2 billion in 2012.

The Group has since changed its business model, from proprietary investment to development of investment products and investment management. This would facilitate third parties to use the Group’s expertise to invest in the financial markets, thereby supporting the Government's efforts towards promoting the development of the domestic capital market. Today, subsequent to the change in business model, ValueCAP’s principal activity is that of a holding company with direct investments in the aforementioned subsidiaries where each is involved in managing third party funds in the conventional and Shariah asset management space, respectively.