NIC ASIA Balanced Fund

Scheme Name

NIC ASIA Balanced Fund

Scheme Nature

Balanced Fund

Scheme Size

NPR 1,25,00,00,000 (One Arba Twenty Five Crore)

Scheme Type

Close ended

Number of issued units

12,50,00,000 (Twelve Crore Fifty Lakhs)

Per unit Price

Rs. 10 (Ten Rupees)

Minimum Units to be sold

6,25,00,000 (Six Crore Twenty-Five Lakhs)

Maximum Units that can be allotted

15,62,50,000 (Fifteen Crore Sixty-Two Lakhs Fifty Thousand)

Scheme Maturity Date

10 years from the date of allotment

Minimum Purchase Units

100 (One Hundred)

Maximum Purchase Units

1,75,00,000 (One Crore Seventy-Five Lakhs); 14% of the total issue

Fund Sponsor

NIC ASIA Bank Limited, Thapathali, Kathmandu

“[CARE-NP] A (Is) (Reaffirmed)”

Seed Capital Investment

Fund Sponsor: NIC ASIA Bank Limited and Fund Manager: NIC ASIA Capital Limited will collectively invest 15% of the total asset of the scheme as seed capital in the NIC ASIA Balanced Fund

Fund Supervisors

1. Mr. Babu Ram Shrestha- M.Sc, M.A. (Economic), PG Dip in RDPM. Experience of more than 11 years in government services.
2. Mr. Ashish Adhikari – LM, Involved in legal practices for over 20 years.
3. Mr. Bodh Raj Niraula -Master in Economic (ME), Over 32 years of experience in government service including ministry of finance.
4. Mr. Santosh Lamichhane – CPA, ACCA, MBS Over 15 years of experience in Auditing.
5. Mr. Shiva Raj Ghimire – MBA, Over 16 years of experience in teaching and education, currently vice president of Saraswati Bahumukhi Campus.

Fund Manager and depository

NIC ASIA Capital Limited (Subsidiary of NIC ASIA Bank Limited)

“[ICRANP] AMC Quality 3 (AMC3)” (Reaffirmed): Adequate Assurance on Management Quality.

Scheme profit distribution Approach

Profit shall be distributed based on the ratio of net profit earned by the scheme as deemed appropriate considering the funds net assets position and investment plan.

Who can purchase the units?

Resident and Non-resident Nepalese citizens, Registered Nepalese firms, Unions, Organizations, BFIs, Fund set-up by any class or group such as EPF, Welfare funds, “guthi”, etc.

Asset Allocations

This scheme will invest in a combination of or in all the following instruments as stipulated by Rule 34 of the prevailing Mutual Fund Regulation:

a) Securities registered with SEBON
b) Securities called for public offering
c) Securities listed in the Nepalese Stock Exchange
d) Debentures, Treasury Bills and other instruments of money market issued by Government of Nepal or Government Agencies receiving full guarantee or protection of Government of Nepal or NRB
e) Bank Deposits
f) Money Market instruments
g) Other areas prescribed by SEBON

Fund related expenses/fees:

1. Expense related to fund issuance

SEBON registration fee: NPR 10,00,000. (10 lakh).

Other issue related expenses: Charges related to promotion, application, allotment, refund, processing fee and other legitimate charges.

2. Fund’s recurring/operating expenses

1. Fund Supervisor’s Fees: 0.10% of asset under management (AUM), calculated as per SEBON’s regulation.
2. Scheme Management fee: 2% of the AUM calculated as per SEBON’s regulation.
3. Depository fees: 0.5% of the AUM calculated as per SEBON’s regulation.
4. Listing and renewal fees: As stated by Nepal Stock Exchange
5. Audit fees: NRs.113,000 for the first year, increased by 10% every two years and fixed after year 5 for remaining year.
6. Notices and Advertisement: NRs 250,000 per annum and increased by 5% up to year 5
7. Legal fee: NRs 50,000 for the first year and increased by 10% up to year 5.
8. CDS registration fee and applicable tax required to be paid by scheme.

(Unless stated by SEBON additional expenses will not be levied on above mentioned headings. Prior approval from SEBON is required to incur additional expenses.)

Charging Schedule

Quarterly

Accounting Policies

1. Generally Accepted Accounting Principles (GAAP)
2. Directives as per Company Act and SEBON
3. Nepal Financial Reporting Standards (NFRS).

Benefits and rights of the unit holders

1. Collect the fund dividend distributed by the fund 
2. Right to sell or purchase the units in the secondary market
3. Right to fund cancellation
4. Right to file complaints to fund manager, fund supervisors and SEBON

Risks associated with mutual fund investment

Mutual Fund Investments are subject to market risks.