Board polls proves long-term investing works, iCapital founder says
KUALA LUMPUR, Nov 10 — The results of iCapital.biz Berhad's board election today showed that long-term investment in Malaysia is viable, the listed closed-end fund's founder Tan Teng Boo said.
When asked to comment on the results, Tan said it shows that there are investors who are not looking at short-time prospects.
"That is what we've been trying to do at iCapital.biz Berhad, to prove that long-term investing in Malaysia can work. It doesn't have to be just listening to rumours and tips.
"We've proven that point, because we got investors and shareholder here who believe in it and are prepared to fight for it," he told reporters today.
Andrew Pegge, co-founder of UK-based Laxey Partners, today failed to get into iCapital's board, with around 86 per cent of shareholders present at the fund's annual general meeting (AGM) voting against his election.
Pegge was nominated by shareholder Evelyn Ho Lai Ming, who reportedly holds 50,000 shares in the fund.
Lo Kok Kee and Low Nyap Heng, two other candidates nominated by shareholder Evelyn Ho Lai Ming, had also lost their bid to be elected directors today, with about 87 per cent and 86 per cent of shareholders voting against them.
Tan had previously said he would seriously consider leaving as icapital.biz's fund manager if any of the trio was elected to the board.
The industry veteran is the managing director of Capital Dynamics, the company that manages iCapital.biz's funds.
Tan reportedly saw Pegge's approach as being a "short-term" approach and had opposed his election to iCapital.biz's board.
Pegge had reportedly said the bid for the position is an attempt to bring up icapital.biz's share price and narrow the gap with its net asset value (NAV), claiming that previous attempts to push the board for action were unsuccessful.
Earlier this week, Tan had said that Capital Dynamics has received approval from the Securities Commission to apply for the setting up of the world's first dual-listed fund.
He had said the dual-listed fund would help narrow the discount of iCapital.biz’s share price as well as fulfil the promise to shareholders that the fund manager would find a way to allow them to invest globally.
Tan said however that he could not disclose how the new dual-listed fund and icapital.biz would be linked.
Today, Tan told reporters that they are waiting for a foreign market regulator's approval for an application for the dual-listed fund, but declined to disclose which country was involved.
He said the fund, which would be listed in Malaysia and the undisclosed country, would be exciting for both short-term and long-term investors.