ValueCAP to exit asset management business

The state-owned investment company is considering various options, including selling or winding up the companies


VALUECAP Sdn Bhd is exiting the third-party asset management business following a strategic review of its operation, as the 19-month-old Pakatan Harapan seeks to reduce overlaps and redundancies in state-owned firms.

ValueCAP said the group is in the process of exploring various strategic options with regard to VCAP Asset Managers Sdn Bhd (VCAM) and i-VCAP Management Sdn Bhd, the company’s two wholly owned licensed asset management subsidiaries.

The state-owned investment company said it was considering various options, including selling or winding up the companies.

“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 in a statement yesterday.

The investment firm, however, said any decisions on VCAM and i-VCAP and the funds managed by them will be subject to the necessary regulatory approvals.

ValueCAP was incorporated on Oct 16, 2002, as an investment holding company principally involved in investments in listed securities on Bursa Malaysia Securities Bhd.

ValueCAP is equally owned by Khazanah Nasional Bhd, the Retirement Fund Inc and Permodalan Nasional Bhd at 33.33% interest each. All the three major shareholders are investment funds.

In October last year, The Malaysian Reserve reported that ValueCAP was directed to re-evaluate its investments and dispose of non-yielding assets as the new government was charting a new strategic road map for its funds.

ValueCAP’s new mandate has been tasked with its new group CEO Roslina Abdul Rahman appointed effective Aug 1 last year.

ValueCAP said VCAM and i-VCAP would keep clients and unitholders informed of any developments following its decision to exit the business.

The company 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.

It added that further updates will be provided in due course, subject to consultation with relevant stakeholders.

ValueCAP started with an initial fund of RM5.1 billion, given by its shareholders.

Former Prime Minister Datuk Seri Mohd Najib Razak announced in September 2015 that the company would be allocated RM20 billion to help stabilise the local stock market.

ValueCAP’s assets under management peaked to around RM17 billion in 2010, while between 2003 and 2013, the average return on the funds managed by the company was over 11%, according to its website.


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