If you have invested in ICAP on 11th Jan 2008, you would have paid RM 2.78 per share for it, while its NAV is RM 2.22 . Over the next 4.5 years, the NAV risen from RM 2.22 to RM 2.94 on 22nd June 2012, for a total growth of 32.4% during this period.
But the same can't be said to your return as a shareholder during these period. The market price on 22nd June 2012 is only RM 2.15, giving you a return of negative 22.7%.
Why is NAV grows 32.4% during these period, while your return as a shareholder is -22.7% ?
It's because at the time of purchase, you're paying 25.2% PREMIUM over NAV, and at the time of sale, people is paying you 26.9% DISCOUNT over NAV.
While buying at discount to NAV is good, it is at the expense of the seller. So is vice versa to buying at premium.
Thus, the best way to be fair to both buyer and seller for the fund to trade close to its NAV, and the best way to achieve this is to have a policy by ICAP to ensure that the gap between NAV and market price isn't wide (say, anything more than plus or minus 5%).
Data available here: http://www.icapital.my/en/weeklynav
And the reason i vote for Laxey is because i'm voting for the gap between market price and NAV to reduce to be fair to both the buyer and seller. Although i know most of you are long term investors, but should you decide to sell one day, you would want to sell at a fair price, don't you?
Just like in Politics. Many vote for PKR not because they want Anwar. But it's because they want "change".
TTB, hope you'll close the gap by setting policy in place.