ICRA Nepal gives ‘“[ICRANP] AMC Quality 3’ fund management rating to NMB Capital

ICRA Nepal has assigned rating of “[ICRANP] AMC Quality 3 (AMC3)” (pronounced ICRA NP Asset Management Company Quality Three) fund management quality rating (FMQR) to NMB Capital Limited. The rated entity carries adequate assurance on management quality. The entities with “[ICRANP] AMC Quality 3 rating is considered as relative position within the FMQR assigned by ICRA Nepal. ICRA Nepal assigns FMQR on a scale of AMC1 through AMC5, with AMC1 indicating highest assurance on management quality and AMC5 indicating poor assurance on management quality. According to a statement of ICRA Nepal, The FMQR also factors in satisfactory investor service practices of NMB Capital and the processes followed by it in generating healthy return (~79% growth in NAV within about two years of operation; benefitted to an extent by spike in market index over this period). The equity oriented growth scheme of NMB Capital registered healthy growth in NAV till mid-Oct-16 (NAV growth of ~79% with 20% cash dividend declared for FY16) compared to the growth in stock market index (~108% over the same period) adhering regulatory guidelines, risk and investment policy (~70% of the fund invested in equity market); which reflects positively on the investment strategy of NMB Capital. The company has recently launched its second scheme (a hybrid natured scheme named NMB Hybrid Fund L– I amounting to NPR 1,000 million with maximum 55% allocation for equity market investment (minimum 15%) A Fund Management Quality Rating from ICRA Nepal provides investors with an independent opinion on the overall quality, governance process, and fund management expertise of the Asset Management Company (AMC) rated.