RULES & REGULATIONS REGARDING INVESTMENT AND OPERATION OF MUTUAL FUND

VALUATION POLICY

As per section 58 of the সিকিউরিটিজ ও এক্সচেঞ্জ কমিশন (মিউচ্যুয়ালফান্ড) বিধিমালা, 2001, the fund shall fix the valuation method for the Scheme subject to the prior approval of the Commission. The investment valuation policy of the Fund will be as follows:

NET ASSET VALUE (NAV) CALCULATION

The Fund intends to determine its NAV per unit on the last business day of each week by dividing the value of the net asset of the Fund (the value of total assets less total liabilities as per Rule 60 of the সিকিউরিটিজ ও এক্সচেঞ্জ কমিশন (মিউচ্যুয়ালফান্ড) বিধিমালা, 2001,) by the total number of outstanding units. The Fund will use the following formula to derive the NAV per unit:

Total NAV       = V_A - L_T

NAV per unit   = Total NAV / No. of outstanding units

V_A  = Value of all securities in vault + Value of all securities placed in lien + Cash in hand and at bank + Value of all securities receivables + Receivables of proceeds of sale of investments + Dividend receivables net of tax + Interest receivables net of tax + Issue expenses amortized as on date + Printing, publication and stationery expenses amortized as on date

L_T   = Value of all securities payable + Payable against purchase of investments + Payable as brokerage and custodial charges + Payable as Trustee fees + All other payable related to printing, publication and stationery + Accrued deferred expenses with regard to management fee, annual fee, audit fee and safe keeping fee

LIMITATION OF EXPENSES

1. All expenses should be clearly identified and appropriated to the Fund.

2. The Asset Management Company may charge Fund for Investment Management and Advisory fees as per the সিকিউরিটিজ ও এক্সচেঞ্জ কমিশন (মিউচ্যুয়ালফান্ড) বিধিমালা, 

3. The Asset Management Company may amortize the initial issue costs of the Fund over a period of 7 years (for open end mutual fund) and 10 years (for close end mutual fund) on a straight line method provided that initial issue expenses / Initial Public Offering (IPO) costs shall not exceed 5% of the collected amount raised under the Fund.

4. In addition to the fees mentioned hereinabove, the Asset Management Company may charge the Scheme of the Fund with the following recurring expenses, namely:

• Marketing and selling expenses including commissions of the selling agents, if any
• Brokerage and Transaction costs
• Cost of registrar services for transfer of securities sold or redeemed
• Trusteeship fees
• Custodian fees
• Dematerialization fees and others (if any)
• Re-registration fees (if any)
• Relevant expenditure for calling meeting by the trustee committee and
• Other expenses applicable to the Mutual Fund.

5. The total expenses charged to any Scheme of the Fund, except the amortization of initial issue expenses, including transaction cost in the form of stock brokerage against buy and sale 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, the annual registration fees payable to the Commission, audit fees, cost for publication of reports and periodicals, bank charges, etc. shall not exceed 4% of the weekly average net assets outstanding of the Scheme during any accounting year or as may be determined by the rules.

6. The expenses referred to hereinabove and any other fees payable or reimbursable to the Asset Management Company or the Trustee shall be charged to the Mutual Fund.

PRICE FIXATION POLICY OF OPEN END MUTUAL FUND

After completion of initial subscription, the Fund will be made open to the investors for regular buy-sale of Units. The date of re-opening shall be declared by the asset manager upon approval of the Trustee and with due intimation to the BSEC.

The Asset Manager shall calculate the Net Asset Value (NAV) per unit on the last working day of every week as per formula prescribed in সিকিউরিটিজ ও এক্সচেঞ্জ কমিশন (মিউচ্যুয়ালফান্ড) বিধিমালা, 2001 and shall disclose sales price and repurchase/surrender price per unit determined on the basis of NAV before commencement of business operation of the first working day of the following week to the Commission and to the investors through at least one national daily, the website of the asset management company and the authorized selling agents of the Fund. In case of holidays, the Asset Management Company shall notify the same on the next working day.

The difference between sales price and repurchase price will be decided by the Board of Directors of the Asset Management Company and shall not be more than 5.0% of the sales price per unit. The Asset Management Company can fix the unit surrender price by maximum 15% deviation (more or less) from the NAV per unit of the Mutual Fund.

The unit holders may surrender their units during the business hour as specified by the Asset Management Company. The Fund shall be liable to repurchase the units at the repurchase price determined by the Asset Management Company. Sale and repurchase of units by the Asset Management Company shall remain closed during first two weeks of July unless the Commission decides otherwise.

DIVIDEND POLICY

1. The accounting year of the Fund shall be July 01 to June 30 or as determined by the Bangladesh Securities & Exchange Commission 

2. The Fund shall distribute minimum 70% or 50% (for Growth Fund), or as may be determined by the সিকিউরিটিজ ও এক্সচেঞ্জ কমিশন (মিউচ্যুয়ালফান্ড) বিধিমালা, 2001, from time to time, of the annual net profit of the Fund as dividend at the end of each accounting year after making provision for bad and doubtful investments.
3. The dividend can be given in the form of cash and/or re-investment Unit or both the option.
4. The Fund may create a dividend equalization reserve by suitable appropriation from the income of the Scheme to ensure consistency in dividend disbursement for each year.
5. Before declaration of dividend, the Asset Management Company shall make a provision in consultation with the Auditor if market value of investments goes below the acquisition cost and the method of calculation of this provision will be incorporated in the notes of accounts.
6. Surpluses arising simply from valuation of investments shall not be available for dividend.
7. The Asset Management Company will dispatch the Dividend warrants, at the expense of the Fund, within 45 days from the declaration of such dividend and submit a statement within next 7 (seven) days to the Commission, Trustee and the Custodian.
8. Before registration for transfer of ownership, a transferee shall not possess the right to any dividend declared.
9. There will be a Cumulative Investment Plan (CIP) scheme in this Unit Fund. Under this scheme a unit holder instead of receiving dividend may reinvest such dividend income accrued for purchasing Unit at a rate determined by IDLC Asset Management Ltd. The unit holders may change their dividend preference in future as per their need.

WINDING UP POLICY OF OPEN END MUTUAL FUND

PROCEDURE OF WINDING UP

1. If the total number of outstanding units held by the unit holders after repurchase at any point of time falls below 25% of the actual units issued, the Fund will be subject to wound up.
2. The Fund may be wound up on the happening of any event, which, in the opinion of the Trustee with approval from the Commission, requires the Scheme to be wound up.
3. The Scheme may also be wound up if the Commission so directs in the interest of the unit holders.
4. Where a Scheme is to be wound up in pursuance to the above, the Trustee and the Asset Management Company shall give simultaneously separate notice of the circumstances leading to the winding up of the Scheme to the Commission. If the winding up is permitted by the Commission, the Trustee and the Asset Management Company shall publish the notice of winding up in two national daily newspapers including a Bangla newspaper having circulation all over Bangladesh.

MANNER OF WINDING UP

1. The Trustee shall call a meeting within 30 days from the notice date of the unit holders of the Scheme to consider and pass necessary resolutions by three-fourth majority of the unit holders present and voting at the meeting for authorizing the trustee to take steps for winding up of the Scheme. Voting rights shall be the same as clause 6.4.1 of the prospectus. If it fails to have three-fourth majority mandate, the Commission shall have the power to supersede the mandate, if situation demands such.
2. The Trustee shall dispose of the assets of the Scheme of the Fund in the best interest of the unit holders provided that the proceeds of sale made in pursuance of the সিকিউরিটিজ ও এক্সচেঞ্জ কমিশন (মিউচ্যুয়ালফান্ড) বিধিমালা, 2001, shall in the first instance be utilized towards discharge of such liabilities as are properly due under the Scheme and after making appropriate provision for meeting the expenses connected with such winding up, the balance shall be paid to the unit holders in proportion to their respective interest in the assets of the Scheme as on the date when the decision for winding up was taken.
3. Within 30 (thirty) days from the completion of the winding up, the Trustee shall forward to the Commission and the unit holders a report on the winding up containing particulars, such as circumstances leading to the winding up, the steps taken for disposal of assets of the Scheme before winding up, expenses of the Fund for winding up, net assets available for distribution to the unit holders and a certificate from the auditors of the Scheme of the Fund.

EFFECT OF WINDING UP

On and from the date of the notice of the winding up of the Mutual Fund, the Trustee or the Asset Management Company, as the case may be, shall –

1. Cease to carry on any business activities of the open-end fund;
2. Cease to create and cancel units of the open-end fund;
3. Cease to issue and redeem units of the open-end fund.