KUALA LUMPUR, 22 Sept, 2015:
The government does not provide financial assistance to ValueCap Sdn Bhd, said the Special Economic Committee (SEC).
In a statement today, the SEC said ValueCap has the mandate to raise up to RM20 billion from its shareholders and financial institutions.
The SEC said the fund was a back-up in the event the subdued capital market scenario continued.
“It will be invested in stages depending on the current share values and at the appropriate time.”
SEC said ValueCap was reactivated as part of pro-active measures announced by Prime Minister Datuk Seri Najib Razak on Sept 14 to stabilise the financial markets.
“ValueCap has a board of directors, separate investment committee to oversee its investment operations and professional investment managers with excellent track records to ensure that the objectives of shareholders are reached.
“Its management is guided by investment philosophy aimed at long-term returns based on dynamic and disciplined investment process plus the company will always be guided by best market practices.”
From 2003 to 2013, ValueCap achieved investment returns of as high as 16.3% per annum as against an average of 10% annual increase recorded by the Kuala Lumpur Composite Index over the same period, it said.