"Profit - Loss Sharing Scheme" is a discretionary portfolio management service where IDLC Investments Limited will manage your fund and take all investment decisions. This is a specific structured product where IDLC Investments Limited will be a partner of your investment with limited sharing as much as 30%. So, the ratio of the total investment will be 70:30, where client will invest 70% and IDLC 30%.

Key Features

• Minimum Investment Amount (Individual/Institutions): BDT 10 Lacs
• Minimum Investment Horizon: 5 (Five) Years
• Investment and Profit-Loss sharing: Under at 70:30 Ratio

Investment Process

Your Portfolio Manager will adopt a clear and transparent investment process in terms of portfolio composition, stock selection, trade execution, monitoring and rebalancing. The investment process has been carefully designed to ensure:

• Independent professional judgment and responsibility in each area 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

We adopt a Top-Down Approach to determine appropriate sector allocation and security selection to build your portfolio. We use both fundamental and quantitative analysis for managing the investments.

Investment Style

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

• Funds will not be invested in securities having lock in period of more than 1 year.
• Funds will not be invested in private venture capital.
• Funds amounting to more than 20% of your total assets will not be invested in unlisted equity/debt securities, including IPO and pre-IPO private placements.
• Funds amounting to more than 20% and 40% of total assets will not be allocated in a single security and single industry respectively.

Risk Aspect

• Prospective investors of DPM should appreciate that portfolio investment in capital market is subject to certain risk factors, as detailed 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.
• Lack of liquidity and extreme price volatility may significantly impact portfolio performance. Due to lack of adequate number of securities, the portfolio may not be optimally diversified. Moreover, strong positive correlation among the equity securities also greatly limits the diversification benefits.
• Appropriate balancing between different asset classes may not be achieved due to absence of an 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, and change in any law or regulations of the territory etc. Such risk exposure may limit your portfolio’s ability to achieve its stated return objective, and may result in substantial loss.

Who Will Bear the Risk?

As a client of "Profit-Loss Sharing Scheme" both profit and risk will be shared proportionately according to partnership investment ratio @70:30 where any profit or loss occurred in the portfolio, IDLC Investment Limited will take 30% responsibility of the total portfolio.

Net Gain Distribution Policy

Net Gain Distribution Policy for “Profit-Loss Sharing Scheme” is that a minimum 50% of the realized gain (if any) will be distributed to the account holders proportionally (70:30) at the end of each calendar year and rest of the amount will be reinvested.

Risk Control Measures

To control volatile portfolio performance, your Portfolio Manager will judiciously apply various risk control measures. The primary paradigm of risk control has been described below:

• First, the Portfolio Manager will set appropriate limits on downside shortfall in securities, industry and portfolio levels.
• Second, the Portfolio Manager will try to minimize risk by selecting fundamental and potential securities and achieving adequate diversification.
• Finally and most importantly, the Portfolio Manager will continuously monitor the performance of your portfolio and the capital market conditions. Your portfolio will be actively balanced in line with the changed market scenario, if it is deemed prudent.

Reporting

Quarterly portfolio and transaction statements will be given. Although, clients can access his/her weekly portfolio from our web portal (https://i-trade.idlc.com/)

Fees and Charges

• Account Opening Fee: BDT 500
• Management Fee: 2.50% p.a. on market value of securities, charged quarterly
• Settlement Fee: 0.35% on transaction value
• Early Exit Fee (within tenor): Not Applicable
• Out of Pocket and Third Party Charges (Central Depository, SMS charges etc.): At actual basis

* Subject to change at the discretion of portfolio Manager

Required Documents

• 1 Passport Size Photograph of Applicant (Applicant’s signature and name in block letter)
• 1 Passport Size Photograph of Nominee (Attested by the Applicant)
• Photocopy of National ID (Applicant and Nominee). In case the nominee is minor, a document of guardian must be provided by the applicant
• If National ID is not available, Photocopy of Passport/Driving License/Nationality Certificate with attested photo and Bank Certificate needs to be provided
• Cheque Leaf/Bank Statement/Bank Certificate
• Photocopy of Employee ID Card/Letter of Introduction from Employer/Visiting Card/Approval of Operational Head (if Applicant is a service holder)
• Trade License (if Applicant is a business person)
• 12 Digit Tin Certificate (Optional)
• If Applicant is Housewife and does not have own income source, then the following documents are required to verify the source of fund:
• National ID of Husband
• Photocopy of Employee ID Card/Letter of Introduction from Employer/Visiting Card/Approval of Operational Head (if Husband is a service holder)
• Trade License (if Husband is a business person)
• If the applicant is Retired Person, then the following document is required to verify the source of fund:
• Release Letter/Employee ID Card/Visiting Card from the last employer

Contact Person's Information

• Hotline Number: +880170 8457025 (9.30 AM to 4.30 PM on working days)
• Mostafa Khalid Mahmud Rubel, CFA: +8801313 792681
• Imrul Hasan : +8801302 609801

“Capital market investments are subject to market risks and there is no assurance or guarantee that the objective will be achieved. However, As fund manager, IDLC will follow a disciplined and structured investment process to reduce the risk of market volatility.”