Ific Bank 1St Mutual Fund Ipo Lottery Result 2010

Written by admin on April 9th, 2011

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 securities 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
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.
1) It is expected that demand for the IFIC Bank 1st Mutual Fund units will always rule over supply.
2) Brand name of IFIC Bank Limited and Trustee, ICB’s track record in the successful marketing of several mutual funds in the
past may motivate investors to invest in this Fund.
3) World class investment management team of the RACE Management PCL as a new-generation Asset Management Company
(AMC) would attract investors to invest in this Fund.
1) Individuals who do not have tolerance of bearing risk and know nothing about the functioning of the capital market need
not apply for the units of the Fund.
2) Individuals who are looking for long-term capital growth and consistent dividend payment and are comfortable with the
risks associated with equity investments should consider investing in the Fund.
3) An individual should also consider investing in the Fund if he/she can accept some variability of returns, have a moderate
tolerance for risk and are planning to invest in the Fund over the medium to long-term.
4) Considering other factors like the investment opportunities available in the market, return expectation, income level and
consumption pattern, one may put only a portion of his/her total portfolio into the Fund.
IFIC Bank Limited is a first-generation private commercial bank with 82 (eighty two) branches across various regions in
Bangladesh. With its stock listed on both Dhaka and Chittagong Stock Exchanges, IFIC Bank Ltd. offers a full range of commercial
banking products and services to corporate, middle-market and retail segments. Being one of the oldest private commercial
banks, IFIC Bank has unique insights into the dynamics in the corporate and financial sector. The Bank strongly believes that the
stock market in Bangladesh is entering a secular growth phase and is becoming an attractive destination for both savings and
investment capital in Bangladesh. As a result, IFIC is increasing its presence in the Bangladeshi stock market and has recently
started stock trading and brokerage services for its clients.
IFIC Bank is the first first-generation bank to sponsor a mutual fund, believing that IFIC Bank 1st Mutual Fund will play a positive
role in developing the Bangladeshi Mutual Fund industry. With that in mind, IFIC Bank has appointed RACE Management PCL as
the Fund Manager. RACE Management is a next-generation asset management company has successfully launched the EBL First
Mutual Fund, the first-ever bank sponsored mutual fund in Bangladesh.
In order to ensure maximum trust and confidence of the investors, supervisory bodies and potential investors in the fund, the
Investment Corporation of Bangladesh (ICB) will act as the Trustee and Custodian of the Fund.
The Investment Corporation of Bangladesh (ICB) was established on 01 October 1976, under “The Investment Corporation of
Bangladesh” Ordinance, 1976 (No. XL of 1976) to encourage and broaden the base of investment, develop the capital market,
mobilize savings, promote and establish subsidiaries for business development and provide for matters ancillary thereto. Over
the years, the activities of ICB have grown manifold, particularly in Merchant Banking, Mutual Funds operations and stock
brokerage activities. ICB is the biggest investment bank and the harbinger of mutual fund industry in the country. Out of
country’s 17 (seventeen) closed-end mutual funds, ICB and its subsidiary manage 13 (thirteen) mutual funds.
As of August 2009, ICB has acted as Trustee to the 11 debenture issuances involving Tk. 155.95 crores, issues of 8 bond issuances
involving Tk. 817 crores. ICB also performed the responsibilities of trustee and custodian to 9 closed-end mutual funds of Tk. 475
crores and 2 open-end mutual funds with initial capital of Tk. 40 crores.
RACE Management PCL (hereinafter RACE) will act as the Asset Manager of the Fund. RACE is a second-generation asset
management company, receiving its Asset Management license in September 2008 after fulfilling rigorous due diligence
requirements of the SEC. RACE Management has already established a successful track record by launching the first-ever
commercial bank sponsored mutual fund, EBL First Mutual Fund and is the only second generation asset management company
to have a mutual fund under management in Bangladesh.
The RACE Team: With about 30 professionals, RACE has one of the largest asset management teams in Bangladesh which
includes (1) senior Bangladeshi investment professionals with world-class training and over a decade of experience in
investment management and research in some of the worlds’ most developed capital markets; (2) Senior Bangladeshi
professionals from the local banking and financial services industry with strong operational experience and an extensive contact
base among the local business community; (3) a cadre of young professionals who have gained unique insights into the local
capital markets through the application of

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