3rd August 2025, Kathmandu
In a significant announcement that underscores its commitment to delivering value to investors, NIC Asia Capital Limited has declared cash dividends for the fiscal year 2024/25 across its diverse portfolio of mutual fund schemes.
NIC Asia Capital Dividends
This decision, made during the company’s 160th board meeting, will result in the distribution of over NPR 365.1 million to unit holders. This move not only rewards investors for their trust but also reinforces NIC Asia Capital’s position as a leading fund manager in Nepal’s competitive capital market.
A Look at the Dividend Payouts
The dividend announcement covers both closed-end and open-end mutual funds, each with its own set of impressive returns. This wide-ranging distribution highlights the robust performance of NIC Asia Capital’s professionally managed schemes across different investment strategies.
Closed-End Mutual Funds
- NIC Asia Flexi Cap Fund: This fund has declared a 10.10% cash dividend, with an approximate total payout of NPR 103 million. The book closure date for this fund is set for August 14 (Shrawan 29), allowing unit holders to ensure their eligibility for the payout.
- NIC Asia Balanced Fund: Demonstrating consistent performance, this fund will distribute a 9.90% cash dividend, amounting to a total payout of over NPR 74.7 million. This adds to its impressive track record of cumulative returns, which stands at a remarkable 79.50% over the past five years.
- NIC Asia Select–30 Index Fund: As an index fund, its performance is tied to the movement of the NEPSE Index. It has announced an 8.65% cash dividend, with a total payout of NPR 108.1 million. The book closure date for this fund is also August 14 (Shrawan 29).
Open-End Mutual Fund
- NIC Asia Dynamic Debt Fund: This open-end fund, which investors can buy or sell directly from the fund manager, has declared a 5.55% cash dividend, with a total distribution of NPR 79.2 million. This announcement is particularly significant as open-end funds provide greater liquidity to investors. The book closure for this fund was on August 3 (Shrawan 18), allowing for a swift distribution process.
The Power of Consistent Performance
- The dividend declaration is not a one-off event but a reflection of a long-standing commitment to strong returns. NIC Asia Capital has a history of delivering stable and competitive returns, as evidenced by the past performance of its funds.
- The Flexi Cap Fund had a strong performance in the previous fiscal year, delivering a 10.50% return.
- The Balanced Fund has shown remarkable stability and growth, providing cumulative returns of 79.50% over five years, with annual returns ranging from 8% to 30%.
- The Dynamic Debt Fund has also delivered impressive total returns of 36% over four years, with consistent annual returns of 6% to 10%.
- The NIC Asia Growth Fund, the first closed-end fund to mature, successfully distributed a total return of 99.93% over its seven-year life cycle, showcasing the fund manager’s ability to create long-term value for investors.
This consistent and competitive performance across a range of funds, from equity-focused to debt-focused schemes, demonstrates NIC Asia Capital’s expertise in navigating the complexities of the Nepali capital market. By offering a diverse range of investment options, it caters to different investor risk appetites and financial goals.
What This Means for Investors and the Market
The distribution of over NPR 365.1 million in cash dividends is a significant event for the Nepali mutual fund industry. It sends a strong signal to the market about the health and potential of mutual fund investments as a reliable wealth creation tool. For unit holders, the cash dividend provides a tangible return on their investment, which can be reinvested or used as income. For potential investors, this announcement serves as a powerful testament to NIC Asia Capital’s robust management and its ability to generate stable returns, even in fluctuating market conditions.
The transparency in announcing the book closure dates and the detailed breakdown of the dividends for each scheme further instills confidence among investors. It showcases a professional and customer-centric approach to fund management. As Nepal’s capital market continues to grow, such initiatives by institutions like NIC Asia Capital play a crucial role in professionalizing the investment ecosystem and encouraging more people to participate in mutual fund schemes.
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