PUTRAJAYA, Sept 14, 2015:
Prime Minister Datuk Seri Najib Razak today announced the revival of ValueCap, with a RM20 billion fund, to help stabilise the local stock market.
Set up in 2002, Najib said ValueCap’s mandate is to support undervalued shares and its efforts until 2013 had proven profitable to its three shareholders – Khazanah Nasional Bhd, Kumpulan Wang Persaraan (Diperbadankan) (KWAP) and Permodalan Nasional Bhd (PNB).
At its website, ValueCap said its assets under management grew to a peak of around RM17 billion in 2010, while between 2003 to 2013, the average return on the funds managed by ValueCAP is in excess of 11%.
Earlier this year, ValueCap established a RM1 billion Environmental, Social and Governance (ESG) open-ended fund – the Malaysian ESG Opportunity Fund – which is benchmarked to the FTSE4Good Bursa Malaysia Index.
Malaysia’s stock market has retreated 8.95% this year. The benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) ended the morning session 8.92 points higher at 1,612.52 lifted by gains in finance-related blue chips.
The key index moved between 1,612.76 and 1,600.70 throughout the morning session. Market breadth, however, was negative with decliners outpacing gainers by 237 to 388 while 252 counters were unchanged, 939 untraded and 20 others suspended. Turnover stood at 974.34 million shares worth RM648.98 million.
Najb also said profit from funds investment by Malaysian firms – both government-linked companies and private entities – should be reinvested locally in projects with high multiplier value which can create more jobs here and further boost the domestic economy.
As of June this year, he said Malaysian firms had RM522 billion worth direct investments abroad compared to foreign direct investments here of RM477 billion.
“Most of these local firms had obtained profit from the overseas investments and it is time they brought these home.”