PETALING JAYA: State-owned investment firm ValueCap Sdn Bhd and its subsidiaries will cease operations.
The company said in a statement that it would exit the third-party asset management business.
ValueCap has two wholly-owned licensed asset management subsidiaries: VCAP Asset Managers Sdn Bhd (VCAM) and i-VCAP Management Sdn Bhd (i-VCAP).
“The group is in the process of exploring various strategic options with regard to VCAM and i-VCAP, including divesting or winding up the companies, ” it said.
In a memo to employees that was sighted by StarBiz online yesterday, group CEO Roslina Abdul Rahman said the decision to shutter the company was made following a meeting of ValueCap’s board of directors on Monday.
“The closure process will be done in phases to facilitate smooth transition for all affected parties, including the employees, ” it said.
VCAM and i-VCAP manage wholesale funds, while i-VCAP also manages exchange traded funds (ETFs).
The companies are proposing to terminate their respective wholesale funds, while i-VCAP is exploring various options in relation to the management of the ETFs.
ValueCap said there is a possibility of transferring the ETFs to another licensed fund management company.
“Any decisions made on VCAM and i-VCAP and the funds managed by them will be subject to the necessary regulatory approvals, ” it said.
“In the interim, VCAM and i-VCAP will keep clients and unitholders informed of any developments as and when updates are available, ” it added.
ValueCap also said that it would work closely with the relevant authorities to ensure the exercise follows due processes and complies with all regulatory requirements.
“Further updates will be provided in due course, subject to consultation with the relevant stakeholders, ” the statement said.
Incorporated in 2002, ValueCap is equally owned by Khazanah Nasional Bhd, Kumpulan Wang Persaraan (Diperbadankan), and Permodalan Nasional Bhd.
It is an asset manager involved in investments in the public listed companies on Bursa Malaysia.
It manages proprietary funds for its shareholders with the mandate to manage third-party funds via its asset management business, comprising VCAP Asset Managers and i-VCAP Management.
ValueCap commenced operations in 2003 and started managing proprietary investments: investments of its own funds – as mandated by its shareholders.
According to information on its website, the company was initially funded by RM5.1bil from its shareholders and recorded an average annual return on funds since inception in excess of 11%.
ValueCAP said its assets under management had peaked at slightly over RM17.2bil in 2010.
However, there have been arguments raised on the real purpose of ValueCap at a time when the market is consistently trading at elevated valuations.
Other than the local market, ValueCap had also introduced to its investors the first US dollar-denominated ETFs last year.
It is named MyETF Dow Jones US Titans 50 (MyETF-US50) and the syariah-compliant ETF is listed on the Bursa Malaysia.
The company said on its website that its strong investment performance since inception had enabled itself to return cash to its shareholders in the form of dividends in excess of RM8bil since its inception.
“Following this, our business model transformed into that of a holding company with investments in two licensed asset management companies: i-VCAP and VCAM, ” it said.
According to ValueCap, it manages not only proprietary funds but also non-proprietary ones: third party mandates.
It had launched many innovative products and offerings that includes new products in the syariah-compliant asset management space.
ValueCap’s chairman is Datuk Syed Muhamad Syed Abdul Kadir while its group investment committee’s chairman is Mohd Asri Awang.
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