Managed Cap Invest is a personalized discretionary investment account designed for high net worth individuals and institutions. In other words, IDLC Finance Limited, following a disciplined investment process and structured approach, will build your portfolio tailored to your specific needs and constraints.

Characteristics of Managed Cap Invest

• Minimum Investment: Individual : Tk. 500,000/- *
• Minimum Investment: Corporate : Tk. 1,000,000/- *
• Minimum Investment Horizon : 1 Year
• Margin Loan : Yes, based on investor’s preference

Who Can Invest in Managed Cap Invest?

Managed Cap Invest account is ideally suitable for any individual having little or no experience of investing in Bangladesh capital market. Also, the experienced investors and institutions can invest to achieve greater sector and style diversification in their portfolios.

Benefits of 'Managed Cap Invest'

• Analysis and periodic review of your individual risk profile and investment objectives.
• Thorough and diligent effort will be taken in formulating appropriate investment strategies, and constructing and rebalancing of your portfolio.
• Permanent monitoring of changes in capital market perspective, and active management.
• Regular risk control and portfolio performance reviews.
• Periodic reporting of your portfolio and financial status.

Investment Process

Your portfolio manager is committed to adopt a clear and transparent investment process in the area of portfolio composition, securities selection, execution, and monitoring and rebalancing. The investment process has been carefully designed to ensure

• Independent professional judgment and responsibility in every echelon of decision making.
• Elimination of all sorts of conflicts of interest.
• Fair dealing and objectivity in every transaction.
• Compliance of law and other fiduciary duties.

Investment Approach

Top down approach will be adopted to determine appropriate sector allocation and security selection to build your portfolio. Both fundamental and quantitative analysis will be utilized for managing the investments.

Investment Style

Portfolio manager will focus on achieving long term returns at a reasonable risk through active management of your portfolio.

Where to Invest?

Your portfolio manager will invest only in securities (both debt and equity) approved by Securities and Exchange Commission and/or Bangladesh Bank. In order to protect the capital and increase the profit potential, funds may be invested, as defense strategy, in quoted/unquoted debt securities, depository instruments, or fixed deposit accounts. While investing, your portfolio manager will abide by the following restrictions:

• Funds will not be invested in securities having lock in period of more than 1 (one) year.
• It will not invest in private venture capital.
• Funds shall not be invested over 30% of your total assets in unlisted equity/debt securities, including IPO and pre IPO private placements.
• Funds shall not be allocated more than 30% and 60% of total assets in a single security, and single industry respectively.

Risk Aspect

Prospective investors of 'Managed Cap Invest' account should appreciate that portfolio investment in capital market involves certain risk factors, including those set forth below, which are not necessarily exhaustive or mutually exclusive:

• Portfolio return is significantly dependent on the macro economic situation and the capital market in particular.
• Illiquidity and the extreme price volatility may significantly impact the portfolio performance. ? Due to lack of adequate number of securities, the portfolio may not be optimally diversified. Also, strong positive correlation among the equity securities greatly limits the diversification benefit.
• Appropriate balancing between different asset classes may not be achieved due to absence of active debt market.
• Despite careful selection of stocks, the companies may fail to provide expected dividend or make timely disbursements.
• The value of the portfolio assets may be affected by uncertainties such as political or social instability, adverse climatic condition, or change in any law or regulations of the territory. Due to above risk exposures, there is no assurances that your portfolio will achieve its stated return objective. Even your portfolio may incur substantial loss.

Who Will Bear the Risk?

As a client of 'Managed Cap Invest' account, you will have to weather the risk of portfolio performance. However, your portfolio manager will implement diligent risk control measures.

Risk Control Measures

Your portfolio manager will judiciously apply various risk control measures. The primary paradigm of risk control is described below:

• First, the portfolio manager will set appropriate limits on downside shortfall in securities, industry and portfolio levels.
• Second, portfolio manager will try to minimize risk by selecting fundament based securities and achieving adequate diversification.
• Finally and the most importantly, the portfolio manager will continuously monitor the performance of your portfolio and the capital market scenarios. It will actively balance your portfolio in line with the changed circumstance, if it deems prudent.

Fees and Charges *

• Documentation Fee: Tk. 500/- (one off)
• Management Fee: 2.50% p.a. on securities value, charged quarterly
• Settlement Fee: 0.35% on transaction value
• Termination Fee (Below 1 year): 0.50% on total asset value at market price plus cash.
• Out of Pocket and Third Party Charges (Central Depository, SMS charges etc.): On actual basis * Subject to change

*condition apply