Interest in portfolio management rises

KATHMANDU, JAN 03, 2012

The bull run in stock market has stimulated portfolio management services offered by merchant bankers.

Anyone who wants to cash in on the ups and downs of the share market but does not have the expertise or time to invest in stock trading can obtain the services of a portfolio management company. Portfolio managers purchase and sell securities on behalf of their clients and manage their investment portfolio.

“The number of clients with us has increased as professionals who do not have the time to devote in investment but want to make money from the capital market have recognised the usefulness of having a professional manage their portfolio,” pointed out chief executive of Nabil Investment Pravin Raman Parajuli. Nabil Investment offers portfolio management services.

Among the 14 merchant bankers licensed by Sebon, 11 have been granted licence to operate as portfolio managers. Among them, only three are involved in providing portfolio management services. Nabil Investment, Beed Invest and Vibor Capital are the only merchant bankers that are managing the funds of their clients.

Beed Invest had started its portfolio management service in 2009. However, since the market was already headed south, many did not consider investing in stocks and in the last four years merchant bankers were not pushing for portfolio management service.

“A large number of people are not aware that portfolio management services that professionally manage their investment are available, but lately professionals with disposable wealth are opting for the services instead of putting the money in fixed deposits,” added Parajuli.

Portfolio Management Directive requires that portfolio managers only take up clients who can invest a minimum of Rs 300,000. They are allowed to purchase and

sell securities on behalf of their clients and settle the funds as well. They will also be acting as consultants regarding the sale or purchase of securities. Moreover, portfolio management is supposed to facilitate Non Resident Nepalis interested in investing in the Nepali secondary market.

As the stock market has once again started its bullish run, share prices have appreciated phenomenally making the capital market attractive once again.

“No other investment instrument provides returns as high as that of bullish share prices, so people are gaining interest in shares,” said share analyst Rabindra Bhattarai.

Source: THT

Nepal investment climate improving

The investment climate in Nepal has been improving ‘technically’, according to the British ambassador to Nepal.

“Now, Nepal has to think about how to attract investments as the investment climate is technically improving,” said British ambassador to Nepal John Tucknott, while addressing a team of British and American investors here today.

The 10-year insurgency has deeply affected the economy and the country could not see any large scale investment during the period, he said, adding that with the change in the political environment in recent months, a lot of foreign investors have shown an interest in investing in the country.

As we finally see the end of the road, it’s time to grow together into a new Nepal that provides opportunities to all, said the ambassador. “Nepal can create lots of jobs and young people do not have to go overseas to send money back.”

Apart from foreign investors, new investments from the current investors are also key, said the envoy hailing the establishment of the Investment Board.

“The conditions and regulations should be eased to encourage them.”

A team of five investors from Britain and the US are currently in Nepal to take stock of the investment climate here. The visitors also hailed the recent change in the political climate and said there is a lot of potential in Nepal.

Briefing the visitors on the current moves of the Investment Board aimed at attracting investment, chief executive of the board Radhesh Pant said that the board will provide a one-window solution to investors.

“It is streamlining the Acts to produce an investment friendly environment,” Pant said, adding that the Investment Board is also working on the framework for incentives, and doing a comparative analysis of neighbouring countries to offer investors a competitive package.

The Investment Board has prioritised seven sectors and is packaging 50 projects to offer to foreign investors.

Source: THT