imalayan 80-20 Mutual Fund Scheme's Public Offering Now Open - Your Complete Source for Key Information

Company Profile: Himalayan 80-20 Mutual Fund Scheme

In the dynamic landscape of Nepal's financial sector, the mutual fund scheme "Himalayan 80-20" emerges as a promising venture, backed by the reputable Himalayan Bank and managed by Himalayan Capital. This endeavor marks Himalayan Capital's first foray into the world of mutual funds, signaling their commitment to providing reliable financial solutions for Nepali investors.

Himalayan Bank Limited: Pioneers of Banking Excellence

Established in 1993 through a joint venture with Pakistan's Habib Bank Limited, Himalayan Bank Limited (HBL) swiftly established itself as a prominent player in Nepal's banking sector. The bank's inception brought with it a legacy of innovation, introducing pioneering banking services that have since become integral to Nepal's financial landscape. HBL proudly claims the introduction of products like the Premium Savings Account, HBL Proprietary Card, and the Millionaire Deposit Scheme, alongside revolutionary services such as ATMs and Tele-banking. From its humble beginnings in Thamel, Kathmandu's Employees Provident Fund Building, HBL embarked on a journey of innovation and customer satisfaction.

HBL's influence extends beyond Nepal's borders, as it diligently serves Nepali citizens both within the country and abroad through its remittance services. With HimalRemitTM, its proprietary online money transfer software, HBL has secured its place as a top remittance service provider, collaborating with financial institutions across the Middle East, Gulf region, UK, Australia, USA, and other global destinations.

The merger with Civil Bank Limited in February 2023 bolstered HBL's position, resulting in the creation of "Himalayan Bank Limited." With an extensive network of 189 branches, 20 extension counters, and over 263 ATMs nationwide, the bank is a vital part of the financial infrastructure connecting Nepal's communities.

Himalayan Capital: Continuing the Legacy

Inspired by Himalayan Bank Limited's success, Himalayan Capital Limited steps forward as a reliable financial partner in Nepal's capital markets. Operating under the tenets of the prevailing Merchant Banker Regulations, the company offers an array of financial services, including Securities Management, Investment and Portfolio Management, and Advisory services.

Introducing Himalayan 80-20 Mutual Fund Scheme

Himalayan Capital Limited's inaugural venture into mutual funds is the Himalayan 80-20 scheme. This closed-end fund is set to be traded on the Nepal Stock Exchange (NEPSE) and boasts a 10-year maturity period. The issue, open from the 32nd of Shrawan, offers a chance for investors to engage with a promising financial opportunity. The scheme will remain open until the 4th of Bhadra, with a potential extension until the 15th of Bhadra if necessary.

The issue is divided into 10 crore unit shares, with 15% (1.50 crore units) worth Rs. 15 crores allocated to Himalayan Bank Limited as the fund sponsor. The remaining 8.50 crore units are available for public subscription from the 32nd of Shrawan onwards. Investors can apply for a minimum of 100 units and a maximum of 10,000,000 units.

A Glimpse of Himalayan 80-20:

- Fund Size: Rs. 1 Arba

- Per Unit Price: Rs. 10

- Total Units: 10,00,00,000

- Fund Sponsor: Himalayan Bank

- Fund Manager and Depository: Himalayan Capital

- Seed Fund by Himalayan Bank: 15% (1,50,00,000 units)

- General Public: 8,50,00,000 units

- Nature of Scheme: Close-end Fund

- Minimum units to be applied: 100

- Maximum units to be applied: 10,000,000

Supervisors and Asset Allocation:

Himalayan 80-20 scheme is closely supervised by a team of professionals from diverse fields. The scheme's portfolio reflects a well-balanced asset allocation strategy:

- **Fixed Income:** 15% (Year 1) to 7% (Year 10)

- **Debentures:** 15% (Year 1) to 5% (Year 10)

- **Shares:** 62% (Year 1) to 34% (Year 10)

- **Money at Call and Short Notice:** 8% (Year 1) to 54% (Year 10)

Himalayan Capital's Capital Structure and Uses of Fund

Himalayan Capital boasts an authorized, issued, and paid-up capital of Rs. 20 Crores. The fund allocation breakdown includes a diverse range of instruments such as government bonds, commercial fixed deposits, development bank fixed deposits, IPOs, corporate debentures, and more. This strategic allocation showcases a prudent approach to managing the fund's resources.

Management Team and ICRA Rating

Under the stewardship of its capable management team led by Mr. Parmeshwar Pant, CEO, Himalayan Capital is poised for growth. Despite being a newcomer in the mutual fund management arena, Himalayan Capital has secured an ICRA NP Asset Management Company Quality Three rating from CRA Nepal, indicating adequate assurance of management quality.

Challenges and Prospects

While challenges such as the absence of a track record in mutual fund management and potential market volatility exist, Himalayan Capital's commitment to growth and diversification positions it as a strong contender in Nepal's emerging mutual fund landscape. The company's alignment with the legacy and reputation of Himalayan Bank Limited adds a layer of trust and credibility.

In conclusion, Himalayan 80-20 Mutual Fund Scheme emerges as an exciting investment opportunity in Nepal's financial market. With the backing of established entities like Himalayan Bank Limited and Himalayan Capital, the scheme holds the potential to offer investors a balanced and promising avenue for capital growth and financial security. As Nepal's financial sector continues to evolve, initiatives like the Himalayan 80-20 scheme represent a step towards a more diversified and dynamic investment landscape.