HIGHLIGHTS OF NABIL BALANCED FUND-I

NABIL BALANCED FUND-I

Fund Sponsor: Nabil Bank Limited
Asset Management Company and Depository: Nabil Investment Banking Limited

• Units allotted for Nabil Bank Limited: 8.4 million units or 14% of the total value of scheme.
• Units allotted for Nabil Investment Banking Limited: 0.6 million units or 1% of the total value of scheme.
• Units allotted for General public: 51 million units or 85% of the total value of scheme.

Note:    NFO (New Fund Offer) applied for more than 100 units should be of divisible by 10 and when applied for more than or equal to NPR 50,000 the payment should be made through account payee cheque.

BOARD OF DIRECTORS OF NABIL INVESTMENT BANKING LIMITED

Mr. Anil Gyawali, Chairman
Qualification: Master of Business Administration
Work Experience: More than 28 years of experience in the field of national and international Banking.

Mr.  Sabin Joshi, Director
Qualification: Masters of Business Administration
Work Experience: More than 10 years of Banking experience.

Dr. Rewat Bahadur Karki, Director
Qualification: PHD in Economics, MA in Economics and Bachelor in Law
Work Experience: More than 30 years of experience in the field of Banking and Economics area of national and international countries and Former General Manger of Nepal Stock Exchange Limited (NEPSE).

MANAGEMENT TEAM OF NABIL INVESTMENT BANKING LIMITED

Mr. Pravin Raman Parajuli (Chief Executive Officer)
Qualification:  Masters of Business Administration
Work Experience: He has been working as the head of Merchant Banking in Nabil Bank Ltd. and as CEO in Nabil Investment Banking Ltd. for more than 3 years. He has also held the post as head of Merchant Banking in NMB bank for 6 years. He has also worked as financial and investment consultant for Chaudhary Group for 2 years.

Mr. Manish Narayan Joshi (Head, Research and Corporate Finance)
Qualification: Masters of Business Administration
Work Experience: He has been working in Nabil Investment banking Ltd as head of research and corporate finance from past 2 years. He has also worked as consultant for Infinity Multipurpose Pvt. Ltd. for 2 years and also worked as the Loan Officer in the Sunrise Bank Ltd. for 2 years. And also obtained experience as Financial Advisory for Prescio Consulting, LLC, USA.

Mr. Suman Kumar Bohora (Head, Accounts and Administration)
Qualification: Chartered Accountant, Masters of Business Administration
Work Experience: He has been working as the head of Accounts and Administration in Nabil Investment Banking Limited from past 2 years. He has worked in Rastriya Banijya Bank Ltd as financial officer for one year. He has also worked in Surya Nepal as deputy general manager in the accounts department for 2 years. Also worked in ALCOA CSI Nepal as an accountant for 2 years.

FUND SUPERVISIORS

Prof. Pawan Kumar Ohja
Qualification: Master of Laws (LLM) from Pune University
Work Experience: Former Attorney General, More than 38 years of experience in legal Profession & working as a Senior Advocate

Prof. Dr. Bijay Kumar K.C.
Qualification: PHD from Faculty of Management Studies, Delhi University, Master of Business Administration and Master of Commerce.
Work Experience: Academician, More than 40 years of teaching & research experience

CA Pusha Lal Shrestha
Qualification: Chartered Accountant and Bachelor of Commerce.
Work Experience: More than 40 years of professional experience

Dr. Ramesh Kumar Bhattarai
Qualification: PHD from Faculty of Management Studies, Delhi University; MBAC from Tribhuvan University.
Work Experience: Former Administrator (CEO) – Employees Provident Fund (EPF), More than 28 years of association with EPF & more than 10 years of experience as the Director of Commercial Banks.

Mr. Binod Babu Kafale
Qualification: Post Graduate in Economics and Graduate in Law.
Work Experience: Former Director, SEBON, More than 30 years of experience in Civil Service

HIGHLIGHTS OF NABIL BALANCED FUND-I

NABIL BALANCED FUND – I is the mutual fund scheme launched under the Mutual Fund Act, 2067. Under this, the base size of scheme is targeted to Rs. 600 million and maximum size is targeted to Rs. 750 million. If the demand from the investors is more than Rs.600 million then only the company can issue further Rs.150 million to meet its maximum size issue of Rs.750 million.

As per the prospectus of the scheme published by the Nabil Investment Banking Ltd. (AMC), they have categories the fund to invest in three sectors.

• First sector consists of those investments which will have fixed income flow
• Second sector is the investment in the ordinary shares and
• Last sector is the investment in the Money at Call.

And they have distributed the fund in following ratio:

                                                                                                             In %

All the investment in the three sectors will be as per stipulated by Rule 34 of the prevailing Mutual Fund Regulation. The instruments may be like  

• Securities called for public offering,
• Securities that are listed at Stock Exchange,
• Debenture,
• Treasury bill and other instruments of money market issued by the government of Nepal or government agencies receiving the full guarantee or protection of the Government of Nepal or Nepal Rastra Bank,
• Bank deposits,
• Market instruments and other area as prescribed by the Board.

Currently, they don’t have any plan to make an investment in the foreign financial markets. However, if sound and secure investment opportunity come to invest in the foreign market, they intend to do so by getting necessary permission from concerned authorities like SEBON and Government of Nepal; and through amending their policies.

From the above three sectors of investment, they have expected following returns for the five years:

                                                                                                           In %

As the above data is forecasted one and since the mutual fund is subject to exposure to market risks, the attainment of the mentioned expected return of the above depends upon the effective supervision and investment expertise of the fund supervisor/manager as well as the management team of the AMC.

With above mentioned expected return from the sectors, they have predicted the following returns and Net Asset Value (NAV) of the scheme for the coming five years.

The AMC has targeted the Net Asset Value (NAV) per unit till the end of five years to Rs 16.15 (capital gain: Rs 16.15 – Rs 10 = Rs 6.15)  and overall dividend target of Rs 3.7 i.e. Rs (.70+.90+1+1.10) making the total expected gain of this 5 year scheme to 98.50% i.e. ((Rs 6.15 + Rs 3.7) /Rs10). Since, this scheme is closed end; the investor will be able to get their investment amount back only after the maturity period and they will be refunded the amount equivalent to NAV per unit at the maturity. And if they want to liquidate their holding before maturity, it can be done just like any other ordinary scrip by selling it at secondary market as the scheme will be listed in the Nepal Stock Exchange (NEPSE).

AMC’S WEBSITE: http://www.nabilinvest.com.np

FUND SPONSOR’S WEBSITE: http://www.nabilbank.com.np

FOR INFORMATION ON FORM SUBMISSION COUNTERS:  CLICK HERE