ICRA Nepal has reaffirmed the FMQR of [ICRANP] AMC Quality 3 (AMC 3; pronounced ICRA NP asset management company quality three) assigned to NIBL Ace Capital Limited (NIBL Ace or the company). The rating indicates adequate assurance on management quality.
- Strong ownership profile
- Fair track record in fund management
- Experienced fund supervisors
- Regulatory changes likely to bring in new sector scrips and hence increase market depth
- Schemes’ performances impacted by volatility in market index
- Sectoral concentration risks and evolving risk management practices
- MF industry in developing stage
- Limited investment diversification avenues so far
- Low attraction of MF schemes among investors
About the company
NIBL Capital Markets Limited was incorporated in 2011 as a wholly-owned merchant banking subsidiary of Nepal Investment Bank Limited. The company’s name was changed to NIBL Ace Capital Limited post the merger with Ace Capital Limited in February 2018. It is licensed by the Securities Board of Nepal (SEBON) to work as an investment banker (including services as mutual fund, private placement, portfolio management) and as a merchant banker (including services as issue management, depository participant, registrar to share (RTS) and underwriting services). NIBL Ace has 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 MF schemes. The company reported a net profit of ~NPR 62 million in FY2019 (~39% YoY growth) on an asset base of NPR 946 million as of mid-July 2019.
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