About the firm
Integral Capital Pte Ltd is a Singapore-based independent boutique fund management company. It is founded and wholly owned by its principals, who have several decades of combined Asian investing experience. The firm operates as a Registered Fund Management Company ("RFMC") with the Monetary Authority of Singapore [MAS] under the Securities and Futures (Licensing and Conduct of Business) Regulations ["SFR"]. Integral Capital specialises in the equity markets in the Asia Pacific region, and currently is the manager of the Integral Asia Value Fund.
About the team
Talib Dohadwala CFA
Talib Dohadwala is one of the founding shareholders and a director of Integral Capital Pte. Ltd., and has a combined 24 years of investment experience. He last held the position of Senior Consultant with the Singapore office of Cambridge Associates, an investment consultancy, having overall responsibilities for the public equity manager research effort in Asia. Prior to his joining Cambridge Associates, Talib spent his career in the Asian equity fund management industry. He began his investment career undertaking equities research, and later portfolio management responsibilities with Schroder Investment Management from 1994 to 1999. He subsequently worked with Allianz Asset Management as a Fund Manager with responsibilities for the South East Asian equity markets from 1999 to 2001, and as Senior Portfolio Manager at First State Investments looking at Asia Pacific ex Japan equities from 2001 to 2006. Talib graduated with a distinction in the Bachelor of Commerce degree from the University of Toronto in 1992, and obtained the CFA (Chartered Financial Analyst) charter in 1998.
John Khng CFA
John Khng is one of the founding shareholders and a director of Integral Capital Pte. Ltd. and has 25 years of investment experience. From 2009 to 2011, John was with Brummer & Partners as a Portfolio Manager and Director of Karakoram Asset Management Pte Ltd which ran an Asian equity hedge fund strategy. Prior to joining Brummer & Partners, he was with Wellington International Management from 2002 to 2009 as an Asian financial sector specialist and portfolio manager on the Asia Pacific team. In addition, he worked closely with portfolio managers and analysts in the Wellington Management head office based in Boston as part of their global effort. Before joining Wellington, John was with Allianz Asset Management since 1999 as an analyst/portfolio manager with responsibilities for South East Asian equity markets. Following Allianz's acquisition of Dresdner bank, John took on additional portfolio management roles for Dresdner RCM's Thailand Country Funds from 2001 to 2002. John began his investment career at Schroder Investment Management from 1993 to 1999 where he was a Research Analyst and Portfolio Manager, focusing on Korea, Japan, Singapore and Malaysia. Prior to his career as an analyst and portfolio manager, John worked in the Singapore Armed Forces from 1983 to 1991. He holds a Bachelor of Science from the National University of Singapore and is a Chartered Financial Analyst.
Tan Hock Meng CFA
Tan Hock Meng is Director of Operations & Compliance at Integral Capital Pte. Ltd., and has a combined 25 years of experience in the investment industry. He last held the position of Director Corporate Development with the CFA Society of Singapore, having overall responsibilities for the organisation's professional development efforts. Prior to his joining CFA Singapore, Hock Meng spent his career in the institutional equity business. He began his investment career undertaking equities research, and later assumed equity sales responsibilities with CLSA Singapore from 1992 to 2004. He subsequently worked with ABN Amro, JP Morgan, and UBS Securities as an Equity Sales specialist. His last position was with DNB Markets as Head of Equity Trading & Sales for Singapore, with responsibilities for the management, and operations of the business. Hock Meng graduated with a honours in the Bachelor of Arts program from Michigan State University in 1986, and obtained the CFA (Chartered Financial Analyst) charter in 1998.
Khalid Badib BSc
Khalid Badib is a Senior Associate - Operations & Compliance with Integral Capital Pte. Ltd., and has been with the firm for over 6 years. He last held the position of Club InterCon Assistant at Inter-Continental Hotels group over-seeing both the front and backend aspects of operations from 2008 to 2011, while pursuing his undergraduate degree. He served as an Admin Support Assistant with the Singapore Armed Forces from 2006 to 2008 during his National Service, with responsibilities for overall daily operations and record maintenance. Khalid graduated with a Bachelor of Science (Business) from SIM University in 2011, and obtained a Diploma in Compliance from ICA (International Compliance Association) in 2013.
The investment objective of the Fund is to achieve superior investment returns over an investment cycle by investing in, mainly listed Asian equities or equity-related instruments. The Fund is benchmark agnostic and may increase its holding in cash when no suitable investment opportunity avails itself.
The Fund adopts a value approach in its investments. The Manager shares the philosophy that a portfolio of high quality businesses acquired at attractive valuations will generate good returns through an investment cycle. The quality of these businesses is reflected by their business franchise, management quality, corporate governance, balance sheet strength and growth potential. Besides identifying these businesses, the Fund will seek to acquire these stakes at a significant discount to intrinsic value and with a view to holding these positions for the long term.
The value approach is integral to the Fund's investment process. The Manager adopts a 'mosaic' approach by evaluating each investment from several different perspectives in order to determine its intrinsic value.
Some of the perspectives by which each investment is studied are:
- The quality of the company's business franchise as reflected by its market share, brand quality, gross and net operating margins, historical track record versus its peer group and its growth potential.
- Management quality, the level of corporate governance and their track record will also be key factors in ascertaining whether an investment in a company is appropriate.
- Other critical factors include the strength of the company's balance sheet, its debt level in relation to its business and its business relationship with its customers and suppliers.
- Some of the key valuation yardsticks which the Fund will use to evaluate fair value include using price-earnings ratios, price-to-book, price-sales, discount to net asset value, price-cash flow, Return on Equity, Return on Assets, Enterprise Value/EBITDA, discounted cash flow and dividend discount models.
The Fund's focus is on the Asia Pacific region which includes all Asian developed and emerging markets. The Manager firmly believes the economic resurgence of China, India and ASEAN, which are amongst the most populous regions in the world, will continue to create investment opportunities and will present long term growth opportunities for investors in the Fund.
The value approach requires the Fund to take a mid to long term investment horizon. The Manager agrees with Benjamin Graham's observation that markets operate as a voting machine in the short-term but work like a weighing machine in the long-term. Stocks are thus likely to be under-priced from time to time, either because of overall pessimism or negative corporate news which may be temporary in nature.
Investing is always about the future and the Manager is aware that all equity investments will carry a certain amount of risk. In addition, some Asian financial markets, which are still evolving in their disclosure and corporate governance requirements, may present other risks to investors. However, the Manager is of the view that assessing intrinsic value and requiring a significant discount before investing provides a 'margin of safety' which will minimize the risks involved and will manage the assets of the Fund in line with this philosophy. Investors however should still be mindful of the risks involved and be prepared to ride through swings in the market. The Manager will not be able to predict short term swings in the market but believes that patience in investing, more often than not, is rewarded.
|Investment universe||Asia Pacific equities|
Value focussed with a three year time horizon
Concentrated portfolio of 25-35 stocks
Single stock limit of 15%, 70% country limit
Full cash flexibility, may leverage up to 20% for liquidity purpose
May hedge currency risk
|Investment Manager||Integral Capital Pte Ltd|
|Type||Cayman registered, open ended mutual fund|
|Fund Administrator||Crowe Horwath First Trust|
|Custodian||Deutsche Bank AG|
|Auditor||Ernst & Young|
|Eligibility||Accredited Investors under Singapore regulations|
|Subscription||Monthly (15 business days notice)|
|Redemption||Quarterly (20 business days notice)|
|Redemption charge||Redemption fee of 3% in the 1st year|