Kathmandu. The deadline for applying for the ‘Global IME Promotion Scheme-2’ operated under the Global IME Mutual Fund has been extended.
Global IME Capital, the scheme manager, had opened applications for the purchase of units of the scheme from July 1. Its removal was supposed to be closed at the earliest on July 15. However, due to lack of sufficient applications, applications can now be made under this scheme till July 15. Capital said that if there are enough applications before this date, the issue will be closed by issuing a notice on any day.
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 BS. Which ensures transparency, investor protection and proper fund management.
Main attribute
- Type of plan: Closed-ended plan
- Fund Name: Global IME Mutual Fund
- Plan Name: Global IME Promotion Plan 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 expelled to the general public: 120 million units
- Minimum investment: 100 units
- Maximum investment: 10% of the plan i.e. 1.20 crore units
- Plan duration: 10 years from unit allocation date
- Dividend policy: distribution from profits received, reinvest the remaining amount
- Listing: Listed on the Nepal Stock Exchange
- Initial investment: 15 percent (fund sponsor and manager)
- Management fee: 1.50 percent of net asset value
- Depository fee: 0.20 percent of net asset value
investment mix
- Equity: Equity instruments: 70–90 percent (high risk)
- Bonds: Fixed income sources: 0–10 percent (medium risk)
- Fixed deposit 0–10 percent (low risk)
- Cash IPO Other mutual funds 0–10 percent (low risk)
- Reason to invest
- Professional management
- Diversification
- Ease and access
- cheap investment
- Transparency
- Tax exemption
- Investor protection
Investment return
Capital has projected an annual average return of 22.49 percent. Accordingly, the unit owners of the scheme will get a total return of 224.96 percent in 10 years.
The projected internal return rate of the scheme is estimated at 16.88 per cent. Capital expects 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 returns have been given. Similarly, the 10-year Global IME Balanced Fund 1 has a fund size of Rs 1.025 billion.
Global IME Capital is the manager of this scheme. This Capital is nepal’s first pure merchant banker established in 2008. This capital is a merchant banker’s licensed bank from the Securities Board of Nepal. Global IME Bank owns 81.50 per cent stake in the bank.
In this unit, 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 ‘My Share’ created by CDSC online.
Credit rating company ICRA Nepal has awarded ICRA NP Issuer Rating A minus to the fund promoter while Infomerics Credit Rating has given IRN AMC Quality 3 Plus rating to the scheme manager.
