Kathmandu. Global IME Capital Limited is going to launch a unit of “Global IME Promotion Plan 2” from July 15. The scheme will initially start with a fund size of Rs 1.2 billion and can be expanded by a maximum of 25 percent to Rs 1.5 billion.
The scheme aims to provide long-term benefits to investors by managing risk in a balanced manner by investing in equity and fixed income instruments.
The scheme has been fully implemented as per the Mutual Fund Regulations 2067, which ensure transparency, investor protection and proper fund management.
Main attributes
Type of plan: Closed-ended plan
Fund Name: Global IME Mutual Fund
Scheme Name: Global IME Promotion Scheme 2
Fund size: Initial Rs 1.20 billion (up to Rs 1.50 billion in case of high demand)
Per unit price: Rs 10
Units to be issued to the general public: 12 crore units
Minimum investment: 100 units
Maximum investment: 10% of the plan i.e. 1.20 crore units
Plan Period: 10 years from unit allotment date
Dividend policy: Distribution from profits received, reinvestment of remaining amount
Listing: Listed on Nepal Stock Exchange
Initial investment: 15 percent (fund sponsors and managers)
Management fee: 1.50% of net asset value
Depository fee: 0.20% of net asset value
investment mix
Equity: Equity related means: 70-90 percent (high risk)
Bond: Fixed income sources: 0–10 percent (medium risk)
Fixed deposits 0–10 percent (low risk)
Cash IPO Other mutual funds 0–10 percent (low risk)
Reasons to invest
Business management
Diversification
Ease and accessibility
Cheap investment
Transparency
Tax exemption
Investor protection
Investment return
Capital has projected an annual average return of 22.49 percent. According to this, the unit owners of this scheme will get a total return of 224.96 percent in 10 years.
The projected internal return rate is estimated at 16.88 per cent. Capital has projected to distribute 8 percent to 20 percent dividend to the unit owners of this scheme for the first nine years.
There are currently two schemes in operation under the Global IME Mutual Fund. Out of this, The Advanced Plan 1 has distributed 104 percent dividend in seven years and 10 percent. 16 percent fund buyback has been given. Similarly, the 10-year Global IME Balanced Fund 1 has a fund size of Rs 1.025 billion.
Global IME Capital Limited is the manager of this scheme. This capital is nepal’s first pure merchant banker established in 2008. This capital is a merchant banker licensed bank from the Securities Board of Nepal, in which Global IME Bank owns 81.50 percent.
In the unit of this scheme, investors can apply from all aswa member banks and financial institutions and their designated branch offices approved by the Securities Board.
Apart from this, they can also apply through C-ASWA system using the software ‘Mero Share’ created by CDS and Clearing Limited online.
Credit rating company ICRA Nepal has given ICRA NP Issuer Rating A minus to the fund promoter and IRN AMC Quality 3 Plus rating to the scheme manager by Infomerics Credit Rating.
