Financial Resource

sophisticated investment techniques and on-the-ground research.
The investment management operation of RACE is managed by a team of investment professionals and is guided by an
Investment Committee. The Investment Committee reviews the Fund portfolio selection process to ensure compliance with the
objectives set out in the Trust Deed. In addition, the RACE Investment Committee pays special regard to guidelines regarding
restriction on investments/investment limits as prescribed from time to time; these restrictions relate to single company/group
investments, investments in associate companies, investments in unrated debt instruments etc. In addition, the RACE
Investment Committee also reviews the portfolio periodically to assess liquidity positions and evaluate the risk parameters and
will, from time to time, rebalance the portfolio.
IFIC BANK 1ST MUTUAL FUND
RACE Approach to Fund Management: Highly Process-Driven Investment Approach
A flexible yet disciplined investment process is the hallmark of a professional investment management fund. Incorporating the
intellectual capital and collective experience of the RACE’s senior investment professionals, RACE has developed a 7-step
investment process:
Step 1: Universe Selection. The first step of the investment process begins with identifying the universe of stocks. These
stocks are then classified in four categories based on RACE’s proprietary selection methodology.
Step 2: Focus List. The universe of stock is then narrowed down to build a prospective focus list. This step is usually done in
phases. The first phase involves narrowing down the list through RACE’s proprietary filtering process. The second phase
involves narrowing the list further through the fundamental research inputs.
Step 3: “Top Down” Analysis involves analysis of macroeconomic trends, analysis on broad market indices, analysis of fund
flow trend to formulate sector biases and sector allocations.
Step 4: “Bottoms Up” Company Analysis. This step involves a combination of individual security analysis based on multiple
parameters, including valuation, qualitative analysis to identify business trends, competitive outlook and corporate
management. These analyses are supplemented by company visits and information exchange with management.
Step 5: Portfolio Construction. The next step is to create an optimum portfolio with the goal of maximizing returns and
minimizing risk.
Step 6: Risk Management. This step applies the pre-determined position limits to the portfolio, limiting sector exposure and
individual stock exposure. Maintaining lower volatility is also an important concern; to this end, beta adjustment and other
sophisticated risk analysis is used.
Step 7: Trade Execution: RACE uses a combination of quantitative strategies and market information to maximize its trade
executions. To this end, RACE has selected a panel of brokers to execute its trades in an efficient and confidential manner.
5.4. AUDITORS:
The Trustee, ICB has appointed Hoda Vasi Chowdhury & Co. Chartered Accountants as the Auditor of the Fund for the first year.
It is one of the reputed and oldest audit firms of the country and is associated with world-renowned Deloitte Touche Tohmatsu.
The Trustee will continue to appoint the Fund Auditor throughout the tenure of the Fund.
5.5. LIMITATION OF EXPENSES:
1) The initial issue expenses in respect of the Fund shall not exceed 5% of the Fund to be raised, the details of which are
provided in this Prospectus.
2) The total expenses charged to the Fund except the amortization of initial issue expenses including transactions cost in the
form of stock brokerage against buy and sell of securities forming a part of acquisition or disposal cost of such securities,
transaction fees payable to the Custodian against acquisition or disposal of securities, CDBL Charges, listing fees payable to
the stock exchanges, the annual registration fees payable to the Commission, audit fees, cost for publication of reports and
periodicals, bank charge, etc., shall not exceed 4% of the weekly average net assets outstanding during any accounting year
or as may be determined by the Rules.
IFIC BANK 1ST MUTUAL FUND
5.6. FEES AND EXPENSES:
The Fund will pay the fees of Asset Management Company, the Trustee and the Custodian together with any other fees,
commissions and expenses as may arise from time to time. The Fund will bear its own costs and expenses incurred/accrued in
connection with its formation, promotion, registration, public offering, listing together with certain other costs and expenses
incurred in its operation, including without limitation, expenses of legal and consulting services, auditing, other professional fees
and expenses, brokerage, share/debenture registration expenses, guarantee or underwriting commission and fees due to the
SEC. The Fund will also bear all other incidental expenses including printing, publication and stationery relating to its smooth and
fair operation.
RACE has estimated the normal annual operating expenses of the Fund will not exceed 4% of the average NAV of the Fund.
However, there may be variation in the actual operating expenses of the Fund. Major expenses of the Fund are detailed as
follows:
1) Issue and Formation Expenses: Issue and formation expenses are estimated to be not over 5% of the total Fund size. The
expenses will be amortized within 10 (ten) years on a straight-line method. The estimated expenses for the issue and
formation of the Fund are presented below:
1. Banker to the issue fee/Collection Charge : 0.60 percent
2. Formation Fee Payable to AMC : 1.00 percent
3. Printing & Publication : 0.60 percent
3. Legal Expenses (Listing Fees, registration Fees etc.) : 1.20 percent
4. Other expenses : 0.80 percent
Total : 4.20 percent
2) Management Fee: As per িসিকউির

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