ICRA Nepal has reaffirmed the FMQR of [ICRANP] AMC Quality 3 (AMC 3; pronounced ICRA NP asset management company quality three) assigned to Global IME Capital Limited (GICL or the company). The rating indicates adequate assurance on the management quality.
- Strong ownership profile
- Experienced fund supervisors
- Regulatory changes likely to bring in new sector scrips and hence increase market depth
- Evolving risk management practices and sectoral concentration risks
- Sub-par performance of operational MF scheme
- MF industry in developing stage
- Limited investment diversification avenues so far
- Low attraction of MF schemes among investors
About the company
Established in May 2008, Global IME Capital Limited (GICL) is a majority-owned subsidiary of Global IME Bank Limited. GICL has been licensed by the Securities Board of Nepal (SEBON) to work as an investment banker (including services as MF, private placement, portfolio management) and as a merchant banker (including services as issue management, depository participant, registrar to share (RTS) and underwriting services). It has also obtained a depository participant’s licence in addition to a fund manager’s licence from SEBON and is currently acting in both capacities for its close-ended scheme i.e. Global IME Samunnat Scheme-1, which was launched in March 2016. GICL reported a net profit of ~NPR 40 million in FY2019 on an asset base of NPR 310 million as of mid-July 2019.