Despite initial apprehension, mutual fund managers are gearing up to be rated on their worthiness.The capital market regulator had mandated the mutual fund managers to be rated by a credit rating agency before launching mutual fund schemes in January.
Icra Nepal — Nepal’s only credit rating agency — has also introduced new rating parameters directed at asset fund managers such as mutual fund managers called ‘Fund Management Quality Rating’. The mutual funds will be rated based on the fund manager’s financial strength, investment performance, human resource and governance by the credit rating agency from now on.
The credit rating agency has been offering its rating for the public offerings, debt instruments and the issuers since the past one year.
“The rating will help investors assess the fund manager’s overall quality, governance process, and expertise based on the agency’s independent opinion,” said Deepak Raj Kafle, managing director of Icra Nepal.
Securities Board of Nepal (Sebon) had decided to introduce compulsory rating provision for the new mutual fund schemes to ensure that fund managers and sponsors backing the funds worth half a billion rupees of the public are solvent and credible enough. Mutual funds that invest pooled cash of small investors are considered to be the best for rookie investors. Thus, rating of mutual funds will help such fresh investors get a better insight into fund manager’s capability.
The regulator has even asked the two mutual fund schemes, which were in the pipeline, to get rated before granting approval. Since the past 10 months, Siddhartha Capital and NMB Capital have been waiting for approval of their schemes worth Rs 800 million and Rs 600 million, respectively, from Sebon. Laxmi Capital is also waiting for approval of its Rs 400 million scheme.
“We are getting the proposed schemes rated by the rating agency as asked by the regulator,” informed Srijesh Ghimire, CEO of NMB Capital.
NMB Capital had submitted the prospectus of NMB Sulabh Investment Fund worth Rs 600 million back in May 2013.“We are hopeful that after submitting the rating certificate, we will be granted final approval,” he said, adding they are planning to conclude the issue before the end of the current fiscal year.
Siddhartha Capital, which is managing the Rs 500 million Siddhartha Growth Investment Fund I, is also waiting for approval for its second scheme.
At present, there are two mutual funds worth Rs 1.25 billion listed at Nepal Stock Exchange (Nepse) .
source: the himalayan times,2 april 2014
LINK
Icra Nepal — Nepal’s only credit rating agency — has also introduced new rating parameters directed at asset fund managers such as mutual fund managers called ‘Fund Management Quality Rating’. The mutual funds will be rated based on the fund manager’s financial strength, investment performance, human resource and governance by the credit rating agency from now on.
The credit rating agency has been offering its rating for the public offerings, debt instruments and the issuers since the past one year.
“The rating will help investors assess the fund manager’s overall quality, governance process, and expertise based on the agency’s independent opinion,” said Deepak Raj Kafle, managing director of Icra Nepal.
Securities Board of Nepal (Sebon) had decided to introduce compulsory rating provision for the new mutual fund schemes to ensure that fund managers and sponsors backing the funds worth half a billion rupees of the public are solvent and credible enough. Mutual funds that invest pooled cash of small investors are considered to be the best for rookie investors. Thus, rating of mutual funds will help such fresh investors get a better insight into fund manager’s capability.
The regulator has even asked the two mutual fund schemes, which were in the pipeline, to get rated before granting approval. Since the past 10 months, Siddhartha Capital and NMB Capital have been waiting for approval of their schemes worth Rs 800 million and Rs 600 million, respectively, from Sebon. Laxmi Capital is also waiting for approval of its Rs 400 million scheme.
“We are getting the proposed schemes rated by the rating agency as asked by the regulator,” informed Srijesh Ghimire, CEO of NMB Capital.
NMB Capital had submitted the prospectus of NMB Sulabh Investment Fund worth Rs 600 million back in May 2013.“We are hopeful that after submitting the rating certificate, we will be granted final approval,” he said, adding they are planning to conclude the issue before the end of the current fiscal year.
Siddhartha Capital, which is managing the Rs 500 million Siddhartha Growth Investment Fund I, is also waiting for approval for its second scheme.
At present, there are two mutual funds worth Rs 1.25 billion listed at Nepal Stock Exchange (Nepse) .
source: the himalayan times,2 april 2014
LINK
Comments
Post a Comment