Thursday 28 Mar 2024
By
main news image

KUALA LUMPUR (Dec 19): Valuecap Sdn Bhd, an investment holding company that is equally-owned by Khazanah Nasional Bhd, Kumpulan Wang Persaraan (Diperbadankan) (KWAP) and Permodalan Nasional Bhd (PNB), seeks to exit the asset management business.

In a statement today, Valuecap said it is in the process of exploring various strategic options for its two wholly-owned licensed asset management subsidiaries, VCAP Asset Managers Sdn Bhd (VCAM) and i-VCAP Management Sdn Bhd (i-VCAP), including divesting or winding up the companies.

This means that the asset management company will cease operations after it has been in existence for 16 years.

Both VCAM and i-VCAP currently manage wholesale funds, while i-VCAP also manages exchange traded funds (ETFs).

“Both companies are proposing to terminate their respective wholesale funds, while i-VCAP is exploring various options in relation to the management of the ETFs, including the possibility of transferring the ETFs to another licensed fund management company,” Valuecap said.

The group also said any decisions made on VCAM and i-VCAP and the funds managed by them will be subject to the necessary regulatory approvals.

“In the interim, VCAM and i-VCAP will keep clients and unitholders informed of any developments on this matter as and when updates are available,” Valuecap said.

“The group will also work closely with the relevant authorities during this period to ensure the exercise follows due process and complies with all regulatory requirements. Further updates will be provided in due course, subject to consultation with the relevant stakeholders,” it added.

Valuecap was incorporated in October 2002. Upon commencement of its operations in 2003, Valuecap started managing proprietary investments i.e. investments of its own funds — as mandated by its shareholders. Initially funded by RM5.1 billion from its shareholders, the average annual return on funds managed by Valuecap since inception over a 10-year period was in excess of 11%, with the equity portion of the fund consistently outperforming benchmark returns. Valuecap's assets under management peaked at over RM17.2 billion in 2010.

Shareholders pumped in additional RM20 billion into Valuecap in 2015.  According to Bloomberg, Valuecap's equity portfolio amounted to US$760 million.

      Print
      Text Size
      Share