Thursday, January 18, 2018

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It is a professional service offered by Portfolio Managers to assist clients manage their wealth professionally based on their investment objective and risk-return appetite.

A portfolio manager develops and implements investment strategies for the investors. The primary role of a Portfolio Manager is the management of clients’ portfolio along with other roles as mentioned in the guidelines of Securities Board of Nepal (SEBON), the regulatory body for the securities market in Nepal.

There are many benefits of availing Portfolio Management Services through Sanima Capital. Some of them are:

  • Professional Management: PMS provides professional management of portfolios with the objective of delivering stable long-term performance while controlling risk.
  • Constant Portfolio Tracking: We understand the dynamics of equity as an asset class, so we track your investments continuously to maximize the returns and minimize the risk level.
  • Risk Control: Well defined investment philosophy & strategy acts as a guiding principle in defining the investment universe. Our vigorous software enables the entire construction, monitoring and the risk management processes.
  • Convenience: Our Portfolio Management Service relieves you from all the administrative hassles of your investments. We provide periodic reports on the performance and other aspects of your investments.
  • Transparency: You will get an account statements and performance reports on a request basis. That’s not all, web access will enable you to track all information relating to your investment on daily basis. A password protected web login will enable you to access details of your investment on click of a button.
  • Personalized Service: A dedicated Relationship Manager will be appointed to handle your portfolio. Your Relationship manager will help you carefully understand your financial goals and advise you the right product mix. The relationship managers ensure that you receive periodic updates and account performance reports.

You can open a PMS account with us, if you are:

  • An Individual
  • An Association of Persons
  • A Limited Companies
  • An NRN

The types of PMS being offered are as follows:

  • Discretionary PMS: The investment decisions are made at the portfolio manager’s discretion. The client mandates Sanima Capital to manage their portfolio. Under this, the choice as well as the timings of the investment decisions rest solely with the Sanima Capital.
  • Non-Discretionary PMS: Some investors prefer to have more control over their portfolios, for which we offer Non-Discretionary PMS. It is a consultative and transparent method of investing where the client will have absolute discretion to execute their own informed investment decision. However the execution of trade is done by the portfolio manager.

For Discretionary PMS, Sanima Capital manages your portfolio without having to bother you with the day to day decisions. The portfolio manager takes all the investment decisions on your behalf including the administrative tasks.

For Non-Discretionary PMS, client has absolute discretion to execute their own informed investment decision. Sanima Capital will maintain all the records of your transactions made and process the administrative works.

Sanima Capital Ltd. has maintained a minimum investment amount requirement at NPR 500,000 (Rupees Five Hundred Thousand Only).

The minimum contract period between the client and Sanima Capital is 2 years.

An additional investment option is available to all the products except for the guaranteed PMS. Such additional investment will be accepted within 30 Days of the PMS agreement date and or within 30 Days of the Performance Fee Calculation date. However, additional investment amount shall minimum be 20% of Initial Investment Amount.

If the client wishes to withdraw before the maturity of the contract period, Exit Load of 2% will be applicable. The exit load will be calculated on the basis of the Investment Amount which includes initial as well as any additional investment amount.

Yes, you can withdraw profit during the contract period depending upon the growth rate and at the consent of the Portfolio Manager. Such withdrawals are allowed for the multiple times, irrespective of time.

Yes, you can open a PMS account with Sanima Capital a combination of cash and stocks or stocks only. You have an option to transfer securities in your possession for management by the Portfolio Manager as part of the investment amount. However, the Portfolio Manager reserves the right to accept/reject the securities which you wish to transfer. The value of securities accepted by the Portfolio Manager will be computed as per the closing price of last transaction date.

  • Annual Management Fee is applicable for PMS which is charged at the time of starting the service and annually thereafter on the investment amount.
  • Performance Fee is charged at the end of first year and annually thereafter after deducting the hurdle rate on the portfolio value exceeding the hurdle rate.

NRNs’ can invest in the secondary market of Nepal as per the Portfolio Management Guidelines, 2067 (2010 A.D.). In fact, Sanima Capital has designed PMS product specifically for NRNs.
For details visit http://sanima.capital/required-documents

You can open a PMS account by emailing or calling us at our exclusive PMS desk. Once we receive your request one of our executives will get in touch with you shortly to process the entire administrative task.
You can call us on: 01-4428956/57 (Ext: 120, 111) or email at: sanimacapital@sanimabank.com
You can visit our Website: http://sanima.capital/portfolio-management-services

We understand that you have given us your hard earned money and therefore we ensure that we answer all your queries. You can visit, call or email us any time.

Dematerialization is a process of converting physical securities into electronic form.

Re-materialization is the process of converting securities held in a demat account in electronic form back into physical certificate form.

The purpose of opening a demat account are as mentioned below:

  • To convert the physical securities into the electronic form,
  • To deposit and transfer the NEPSE listed securities in a dematerialized form ,
  • To credit the securities allotted through IPO and corporate actions (such as rights share issue, bonus issue, merger, etc.) in a dematerialized form,
  • To receive the statement of the securities held in a demat account,
  • To pledge the securities held in a demat account,
  • To rematerialize the securities held in a demat account.

A beneficial owner is the person who have opened the demat account with CDSC through a registered Depository Participant in order to deposit their securities or instruments which are capable of being deposited in demat form.

A Depository Participant is an agent of the depository who has received the registration certificate from the Security Board of Nepal and the membership license from CDSC. As a Depository Participant (DP), Sanima Capital is the intermediary between the depositary system (CDSC) and our clients. Sanima Capital shall open de-mat account of beneficial owner (BO), de-materialize securities, re- materialize securities; maintain record of securities in the electronic form.

An issuer means any entity such as corporate bodies/ government organizations that issue securities or market instruments to the public to raise its capital and those securities and instruments can be held in depository in electronic form.

Registrar and Transfer Agent (RTA) means any person / body corporate who on behalf of any corporate body, maintains the records of holders of securities issued by such body corporate and deals with all matters connected with the transfer and redemption of its securities.

BOID is a unique 16 digit identification number given to BO which is generated only when BO opens the demat account in CDSC through an authorized DP. BOID must be mentioned in all future transactions. BOID cannot be duplicated. It means two BOs cannot have same BOID which replicates that the securities cannot be transferred into a wrong account.

The following documents are required to open De-mat account at Sanima Capital.

  • Self-verified copy of citizenship
  • Recent passport size photograph-(1 number)

In the case of minor

  • Copy of citizenship of any of the guardian
  • Copy of birth certificate
  • Recent passport size Photograph- (1 Number)

Account opening charges- NPR 50
Annual maintenance charges- NPR 100 at the end of one year.

  • Eliminates risk associated with physical certificates.
  • Immediate transfer of securities.
  • Immediate settlement cycle.
  • Immediate distribution of shares allotted in IPO.
  • Easy in portfolio management.
  • Solve the problem of address change.
  • Easy in pledge of securities.

DP provides the following services to the investors:

  • To open the Demat account
  • Dematerialization of securities
  • Re-materialization of securities.
  • To maintain record of securities in the electronic form
  • Settlement trades by transferring/receiving the securities from/in BO accounts.
  • Settlement of off-market trades that is occurred between BOs outside NEPSE
  • To provide electronic credit of securities allotted by issuers during IPOs
  • To deposit the non-financial corporate benefits (such as: bonus, right shares, etc.) issued by issuers in the demat account of BOs
  • To facilitate in pledging of dematerialized securities.

An ISIN is a unique 12 digit alphanumeric code given to the securities such as shares, preference shares, debentures, bonds, etc. when the security is admitted in the depository system. The first two digits of the ISIN code indicate country of registration for the security.

No, different securities issued by the same issuer will have different ISIN code.

An investor, already having demat account with CDSC can open another demat account

A DP does not have access to account details of BO of any other DP except that account only which it has rendered the depository services.

BOs get information about the update of their account after each transaction through the following means:

  • DP provides a statement of transactions at end of every three months. BOs can get the updated information via a statement provided.
  • With the launch of EASI (Electronic Access to Securities Information), BOs can get the updated information about their demat account at any point of time with the access of the internet.

BOs should immediately contact their DP if there are any discrepancies in the holdings of securities. In case the problem is not resolved by DP, BOs must approach directly to CDSC.

BOs do not have to pay any charge for dematerialization of securities. However, they have to pay charges as prescribed by the Bye Laws to DP for re-materialization of securities.

T+3 signify the time period for the settlement of transactions traded in NEPSE. It denotes that settlement should be done within 3 working days of the transaction