About Capital Dynamics
On 28 October 1929, the New York Stock Exchange (NYSE) fell 12.8% in a single day. This crash lasted until 8 July 1932 and eventually wiped out 89% of the value of the companies listed on the NYSE. It was the beginning of the Great Depression and a period where those who have lived through it vowed never to go through such an experience again.
On 19 October 1987, the NYSE crashed 508 points or 22.6% in a single day, pulling markets down everywhere. The worst single day in 1929 fell only 12.8%. The world waited for what many had thought was inevitable: The Second Depression.
Someone instead viewed the pessimism then as a marvelous investment opportunity. So, it all began in early 1988, when Tan Teng Boo, founder and managing director of the Capital Dynamics group, set up Capital Dynamics Sdn Bhd (CDSB), which became Malaysia’s first independent investment adviser. CDSB also marked the beginning of a global investment advisory and fund management group.
Capital Dynamics Asset Management (HK) Private Limited (CDHK) obtained the Type 9 (Asset Management) licence issued by the Securities and Futures Commission Hong Kong (SFC) in January 2013. Its principal activity is to provide asset management service to corporations, institutions and individual investors.
CDHK provides discretionary investment management service and the first client was onboarded in October 2015. CDHK manages the i Capital China Fund, a newly launched retail unit trust fund authorised by the SFC.
CDHK is a member of the Capital Dynamics group, a fund management and investment advisory group with offices in Hong Kong, Shanghai, Kuala Lumpur, Singapore and Sydney. Capital Dynamics Sdn Bhd and Capital Dynamics Asset Management Sdn Bhd are licensed by the Securities Commission of Malaysia. Capital Dynamics (S) Private Limited is regulated by the Monetary Authority of Singapore. Capital Dynamics (Australia) Ltd is licenced by the Australian Securities and Investments Commission. The group set up a representative office in Shanghai in 2013 and Capital Dynamics Investment Management and Advisory (Shanghai) Co. Ltd (“CD China”), a wholly foreign-owned enterprise in 2015. CD China will commence business as a fund manager upon obtaining the relevant licences.
Licensed under the Capital Markets & Services Act 2007, Malaysia, Capital Dynamics Sdn Bhd (CDSB) is the first independent Investment Adviser in Malaysia. CDSB has been described as “one of the country’s most iconoclastic and critical research outfits” (Investors Digest : Mid October Issue 2001). Since 1989, CDSB has been publishing the highly respected i Capital, a weekly investment report, in English and Mandarin. In 2002, www.icapital.biz, the online version of i Capital was launched. i Capital and www.icapital.biz, have proven their capability in delivering consistently top quality investment advice.
Licensed under the Capital Markets & Services Act 2007, Malaysia as a Fund Manager, Capital Dynamics Asset Management Sdn Bhd has continuously delivered an unparalleled performance with returns handsomely beating the benchmark indices.
Capital Dynamics Sdn Bhd and Capital Dynamics Asset Management Sdn Bhd are the Investment Adviser and Fund Manager to icapital.biz Berhad, the only closed-end fund listed on Bursa Malaysia. icapital.biz Berhad was listed on 19 October 2005.
In 2006, Capital Dynamics achieved a major milestone when it established Capital Dynamics (S) Pte Limited in Singapore, its platform for global investing. With this, it became the first Asian-owned fund manager to invest worldwide. In July 2007, Capital Dynamics (S) Pte Ltd launched the i Capital Global Fund.
In 2008, while others were shrinking, we had an exciting addition. In February 2008, Capital Dynamics (Australia) Ltd was formed. Based in Sydney, it is the first Asian-owned fund manager to obtain the Australian Financial Services Licence (AFSL326283). It manages the i Capital International Value Fund (ARSN 134578180), an open-end, global unit trust for retail investors. It also offers individually managed accounts for wholesale investors. Capital Dynamics (Australia) invests globally for its clients based on its time tested value investing philosophy.
What distinguishes Capital Dynamics from others is our independent structure that allows us to serve our clients profitably yet without conflicts of interest. It currently manages assets of around USD300 million and still growing. Together, we have built up an impeccable reputation, based on integrity and consistent quality.
We believe that successful investing involves the 3 ‘i‘s – Independence, Intelligence and Integrity.
Independence
Capital Dynamics is an independent fund management and investment advisory house. We are not affiliated with any financial institution, stock broking companies, political or government organisation, preventing any possible conflicts of interest from arising.
Capital Dynamics is owner-operated. For our clients, this represents the assurance of consistency and continuity in our investment approach when managing clients’ portfolios.
Intelligence
Capital Dynamics does not act on tips, rumours, and hearsay, but only on an intimate knowledge of investments, based on intelligent and objective analysis. Our research is independent and we have our in-house team of professionals to analyse companies, industries, markets and economies first-hand.
Integrity
Our success is undeniably tied with our clients’ success. While it sounds abstract, Capital Dynamics believes that integrity will in the long run show in the investment returns our clients receive.
Our managing director, Teng Boo, has always been fascinated with the stock market, having been a “student” of the market for more than 40 years. He strongly believes that investing intelligently in equities will provide superior investment returns. Having seen and experienced his first bull and bear market in 1972-1973 was not enough. It was a passion that had to be whetted and Capital Dynamics was the manifestation. But having a passion, although a powerful motivating force, is not enough.
What are the choices available to investors, be they individuals, corporations or institutions, when they want to invest in the stock market? Who can they turn to for investment services without conflicts of interest?
To better illustrate this dilemma facing an investor, we quote from the book “Where are the customers’ yachts?” Written in 1940 by Fred Schwed, it says:
“An out-of-town visitor was shown the wonders of the New York financial district.
When the party arrived at the Battery, one of his guides indicated some handsome ships riding at anchor.
He said, “Look, those are the bankers’ and then brokers’ yachts.”
The naïve visitor asked, “Where are the Customer’s Yachts?”
At Capital Dynamics, we realised that there are many investors who needed a fund manager or investment adviser that has a “partnership” attitude towards clients, one whose success is unquestionably tied up with the performance of clients’ investments. There is a dire need for a fund manager or investment adviser that has no conflicts of interest, either hidden or obvious. One that has a very clear focus.
In building up Capital Dynamics as an independent, owner-operated set-up, there is really no doubt that we have put our money where our mouth is. Even though the structure is corporate, our attitude is one of genuine partnership. We do well only if our clients do well.
