Financial Resource

The draw of the lottery for the IFIC Bank 1st Mutual Fund initial public offering (IPO) will be held on March 09, 2010 (10:30 AM)

Next at the Bangabandhu International Conference Centre at the Sher-e-Bangla Nagar in Dhaka, President of the DSE Rakibur Rahman confirmed Wednesday. The trading of the GP shares on the bourses is expected to begin by November 15 next.

The Scheule for IFIC Bank First Mutual Fund Lottery:

Date:March 09, 2010

Time: (10:30 AM)

Venue: Bangabandhu International Conference Centre

IIFIC Bank 1st Mutual Fund
SIZE OF THE FUND:Tk.1,200,000,000 divided into 120,000,000 units at par value of Tk. 10 each
SPONSOR’S CONTRIBUTION: 25,000,000 Units of Tk. 10 each at par for Tk. 250,000,000
PRE IPO PLACEMENT: 55,000,000 Units of Tk. 10 each at par for Tk. 550,000,000
PUBLIC OFFER : 40,000,000 Units of Tk. 10 each at par for Tk. 400,000,000
RESERVED FOR MUTUAL FUNDS: 4,000,000 Units of Tk. 10 each at par for Tk. 40,000,000
NON RESIDENT BANGLADESHIS: 4,000,000 Units of Tk. 10 each at par for Tk. 40,000,000
RESIDENT BANGLADESHIS: 32,000,000 Units of Tk. 10 each at par for Tk. 320,000,000
This Offer Document sets forth concisely the information
about the fund that a prospective investor ought to know
before investing. This Offer Document should be read
before making an application for the Units and should
be retained for future reference.
The particulars of the fund have been prepared in
accordance with  as amended till date and filed with
Securities and Exchange Commission of Bangladesh.
The Issue/Fund shall be placed in “A” category.
The Fund shall apply for listing with both the Stock
Exchanges.
SPONSOR :
IFIC Bank Limited
TRUSTEE:
Investment Corporation of Bangladesh (ICB)
CUSTODIAN:
Investment Corporation of Bangladesh (ICB)
ASSET MANAGEMENT COMPANY:
RACE Management PCL
Subscription
Subscription opens:February 7,2010
Subscription closes: February 11,2010
For Non-Resident Bangladeshis
subscription closes on February 20,2010
Date of Publication of Prospectus:January 11,2010
IFIC BANK 1ST MUTUAL FUND
Highlights
1. Name: IFIC Bank 1st Mutual Fund
2. Size of the Fund: Tk. 1,200,000,000 divided into 120,000,000 units at par value of Tk. 10.00
each. In future the fund size will not be changed.
3. Face Value: Tk. 10.00 per unit.
4. Nature: Closed-end Mutual Fund with a tenure of 10 years.
5. Objective: The objective of the Fund is to provide attractive dividend to the unit holders by investing the
proceeds in the various instruments in the Bangladeshi Capital Market and Money Market.
6. Target Group: Individuals, institutions, non-resident Bangladeshis (NRB), mutual funds and collective
investment schemes are eligible to apply for investment in the Fund.
7. Dividend: Minimum 70% income of the Fund will be distributed as dividend in Bangladeshi Taka only at the
end of each accounting year. The Fund shall create a dividend equalization reserve fund to
ensure consistency in dividend.
8. Mode of Distribution: The dividend will be distributed within 30 days from the date of declaration.
9. Transferability: Units are transferable. The transfer will be made by the CDBL under electronic settlement
process.
10. Encashment: The Fund will be listed with DSE and CSE. So investment in this Fund will easily be encashable.
11. Tax Benefit: Income will be tax free up to certain level, which is permitted as per Finance Act. Investment in
the Fund would qualify for investment tax credit under section 44(2) of the Income Tax Ordinance
1984.
12. Report & Accounts: Every unit holder is entitled to receive annual report together with the yearly and half-yearly
statements of accounts as and when published.
IFIC BANK 1ST MUTUAL FUND
Risk Factors
Investing in the IFIC Bank 1st Mutual Fund (hereinafter the Fund) involves certain considerations in addition to the risks normally
associated with making investments in securities. There can be no assurance that the Fund will achieve its investment objectives.
The value of the Fund may go down as well as up and there can be no assurance that on redemption, or otherwise, investors will
receive the amount originally invested. Accordingly, the Fund is only suitable for investment by investors who understand the
risks involved and who are willing and able to withstand the loss of their investments. In particular, prospective investors should
consider the following risks:
1. In General: There is no assurance that the Fund will meet its investment objective; investors could lose money by
investing in the Fund. As with all mutual funds, an investment in the Fund is not insured or guaranteed by the
Government of Bangladesh or any other government agency.
2. Market Price Risk: Stock prices and Mutual Fund prices generally fluctuate because of the interplay of the various
market forces that may affect a single issuer, industry, or market as a whole. The Fund may lose its value or experience
a substantial loss on its investments due to such market volatility.
3. NAV Risk: Stock market trends show that prices of many listed securities move in unpredictable directions, which may
affect the value of the Fund’s portfolio of listed securities. Depending on its exposure to such securities, the net asset
value of units issued under this Fund can go up or down depending on various factors and forces affecting the capital
markets. Moreover, there is no guarantee that the market price of unit of the Fund will fully reflect their underlying net
asset values.
4. Issuer Risk: In addition to market and price risk, value of an individual security can, in addition, be subject to factors
unique or specific to the issuer, including but not limited to management malfeasance, lack of accounting transparency,
management performance, management decision to take on financial leverage. Such risk can develop in an
unpredictable fashion and can only be partially mitigated, and sometimes not at all, through research or due diligence.
To the degree that the Fund is exposed to a security whose value declines due to issuer risk, the Fund’s value may be
impaired.
5. Legal Risk: The Honorable High Court, in its verdict on November 8th, allowed mutual funds to expand their capital
base by issuing bonus and rights shares or pay dividends through cash or bonus shares, without curbing the regulator’s
absolute power to determine which funds would be eligible to do so. However, although the case has been resolved by
the High Court, the Securities and Exchange Commission still has the provision to appeal against the verdict with the
Appellate Division of the Supreme Court and by exercising that option, the issue of dividends in any form may remain
pending once again.
6. Asset Allocation Risk: Due to a very thin secondary debt market in Bangladesh, it would be difficult for the Fund
Manager to swap between asset classes, if and when required. In addition, limited availability of money market
instruments in the market implies that there are only few opportunities for short term or temporary investments for
the Fund.
7. Lack of Diversification Risk: Due to small number of listed securities in both the stock exchanges, it may be difficult to
invest the Fund’s assets in a widely diversified portfolio.
8. Liquidation Risk: Market conditions and investment allocation may impact on the ability to sell securities during periods
of market volatility. The Fund may not be able to sell securities or instruments at the appropriate price and/or time.
9. Dividend Risk: If the companies wherein the Fund will be invested fail to pay expected dividend, it may affect the
overall returns of the Fund.
10. Investment Strategy Risk: The Fund is subject to management strategy risk because it is an actively managed
investment portfolio.The AMC will apply investment techniques and risk analyses in making investment decisions for
the Fund, but there can be no guarantee that these techniques and analyses will produce the desired results.
11. Socio-Political & Natural Disaster Risk: Uncertainties resulting from political and social instability may affect the value
of the Fund’s Assets. In addition, adverse natural climatic condition may hamper the performance of the Fund.
IFIC BANK 1ST MUTUAL FUND
1. PRELIMINARY
1.1. PUBLICATION OF PROSPECTUS FOR PUBLIC OFFERING:
RACE Management PCL has received Registration Certificate from the Securities and Exchange Commission (SEC) under the
consistency in dividend.
5) The Asset Management Company shall dispatch the dividend warrants at the expense of the Fund, within 30 days of the
declaration of the dividend and shall submit a statement within next 7 (seven) days to the Commission, the Trustee and the
Custodian.
6) Before record of ownership by the CDBL, a transferee shall not possess the right to any dividend declared by the Fund.
Total NAV
——————————-
No. of units outstanding
IFIC BANK 1ST MUTUAL FUND
4. RISK CONSIDERATIONS
4.1. RISK FACTORS:
Investing in the IFIC Bank 1st Mutual Fund (hereinafter the Fund) involves certain considerations in addition to the risks normally
associated with making investments in securities. There can be no

Pages: 1 2 3

Tags: 2010, accounting, alternative fund, amount, asset, asset management company, bangla, bank, bourses, business, bythe, capital, capitalbase, custodian, dividend, dse, exchange, exchange commission, Fees, finance, forthe, fund, General, government, Ific, industry, initial public offering, initial public offering ipo, Invest, investment corporation, lack, Legal, Lottery, lottery result, Mutual, mutual fund, mutual funds, november 15, objective, par value, particulars, portfolio, power, prospective investor, race management, regulator, result, scheule, sher, stock, transparency, value, verdict, volatility