NIC ASIA Flexi Cap Fund

Scheme Name

NIC ASIA Flexi Cap Fund

Scheme Nature

Equity Oriented Fund

Scheme Size

NPR 1,000,000,000 ( 1 billion)

Scheme Type

Close ended

Number of issued units

100,000,000 (100 million)

Per unit Price

Rs. 10 (Ten Rupees)

Minimum Units to be sold

  50,000,000 (Fifty million )

Maximum Units that can be allotted

125,050,000 (One hundred twenty-five million)

Scheme Maturity Date

7 years from the date of allotment

Minimum Purchase Units

100 (One Hundred)

Maximum Purchase Units

10,000,000 (Ten million); 10% 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 will invest 15% of the total asset of the scheme as seed capital in the NIC ASIA Flexi CAP Fund

Fund Supervisors

1. Mr. Bodh Raj Niraula -Master in Economic (ME), Over 32 years of experience in government service including ministry of finance.
2. Mr. Ashish Adhikari – LM, Involved in legal practices for over 21 years.
3. Mr. Santosh Lamichhane – CPA, ACCA, MBS Over 16 years of experience in Auditing.
4. Mr. Shiva Raj Ghimire – MBA, Over 17 years of experience in teaching and education, currently vice president of Saraswati Bahumukhi Campus.
5. Mr.Mahendra Nath Karmacharya- M.COM, Over 30 years of Experience in Banking and Financial Sectors

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.

Investment Objective

The investment objective of the Scheme is to seek to generate long-term capital growth from an actively managed portfolio primarily of equity and Equity Related Securities.

Investment Philosophy:

Scheme shall be investing in Nepalese equities and related instruments and debt securities. Buying securities at a discount to intrinsic value will help to create value for investors. Our investment philosophy is to invest in such value stocks. Long Term refers to an investment horizon of 3 years and more. The Scheme will evaluate different companies based on their long-term prospects (3 years and more) rather than just looking at next quarter or a few quarter’s earnings. Since the objective of the Scheme is to hold the investments in the companies where the Scheme has invested for the long term, it is expected that the core equity portfolio of the Scheme will have low churn (portfolio turnover). However, the actual churn (portfolio turnover) could be higher depending on circumstances prevailing at respective times.

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).

Issue Management Fees: 0.25% of total Fund Size

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

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: 1.5% of the AUM calculated as per SEBON’s regulation.
3. Depository fees: 0.2% 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 100,000 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.