ICAP (5108) iCapital.biz - Further comment on NAV annualised return
I have sourced the NAV of iCapitall.biz from Bursa weekly announcement from 2005 to 2020 and tried to compare the growth rate with that of KLCI as shown in Table 5 on page 5 of 2020 Annual Report.
Below is the line charts that I got.
Fig. 1
A B C D
iCapital.biz was first listed on Bursa Malaysia on 17-10-2005
Therefore I have chosen its NAV as at 19-10-2005 as the first data. And subsequently every year on the 19th day of October (+/- 5 days), the NAV figure will be taken. (The +/- 5 days is to make allowance for the NAV which are published on Bursa not on a daily basis but on a weekly basis). The same anniversary date as far as possible is chosen so that consistency is preserved.
As for KLCI annualised return rate, I have adopted the figures from Table 5 of page 5 of 2020 Annual Report. (I don’t know the source of these data, but just to borrow it for a cursory comparison). Personally I think a comparison of a Closed-end Fund with KLCI may not be the best approach. But that will be another topic later.
The data in Column B in Fig. 1 are sourced from the weekly Bursa announcement over the years. There is a 9.5 sen added back to the NAV from 2013 onward to adjust for the one-off dividend paid in 2013. (Anyway this this does not make much difference)
The data in Column C in Fig. 1 are derived from Column B.
Data on Column D are taken from Table 5 of page 5 in 2020 Annual Report.
Comment:
From the line charts above, the following conclusions can be made:-
iCapital.biz’s NAV return performance in the early years (2005 to 2010) is better than that of the KLCI. But its performance was more volatile.
However, in the last 10 years, its performance has appeared to have gone below that of the KLCI both in stability and in trend.
From 2010 to 2015, its growth rate has been dropping more than that of the KLCI. After a short recovery in 2015 to 2017, it has started to slide further until today. This time the slide is even steeper.
While the KLCI has also been on a downward trend, its slide is more gentle compared to iCapital.biz.
The comparison with KLCI aside, the performance of iCapital.biz by itself also does not bode well. It can be seen that its performance has been deteriorating after its first few years.
This may be one of the main reasons why its share price maintains a large discount against its NAV. Investors are looking for future prospect rather than past record. (Although past record may form some basic in judging the future).
If out of 15 years, you have only 5 good years and 10 not so good years, it is difficult to get investors to buy your story.
P/S
When reading a chart or graph, we need first to know where the data are sourced from or derived. Without that you might as well read “Alice in Wonderland”.
The sources of my data have been laid out and it is up to you to verify.
https://klse.i3investor.com/blogs/3Is/2020-11-19-story-h1536519459-iCapital_biz_Further_comment_on_NAV_annualised_return.jsp
