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SwissPro Invest
Frontier Markets Asia
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Frontier Markets Asia
1
SwissPro Invest
Frontier Markets Asia
www.frontier-markets-asia.com
Overview
I. Frontier Markets Asia SwissPro Invest
II. N-11 and Frontier Five
III. Economy in an!"ades# o$$ers o%tstandin! "on!-term !rowt# o&&ort%nities
I'. (istorica""y "ow corre"ation to Emer!in! and )eve"o&ed Markets
'. *ecent market conso"idation o$$ers e+ce""ent entry &oint $or investors
'I. Fact S#eet an!"ades#, -a&ita" Market and )#aka Stock E+c#an!e
'II. .%r Investment P#i"oso&#y and Process
'III. /#e SPI an!"ades# F%nd
I0. *isk, its ana"ysis, its mana!ement and t#e Im&ortance o$ 1i2%idity
0. Investments wit# a S.-IA1 IMPA-/
0I. A&&endi+
3
SwissPro Invest
Frontier Markets Asia
www.frontier-markets-asia.com
E+&erienced e+ec%tive team
wit# an avera!e o$ 34 years e+&erience in senior ro"es in t#e $inancia" services ind%stry in E%ro&e and an!"ades#
M%"ti-nationa" ta"ent &oo"
)istinctive 5"end o$ E%ro&ean com&etence and "oca" know"ed!e o$ investment &ro$essiona"s wit# on t#e !ro%nd
o$$ice and access to t#e an!"ades# market and its &"ayers
Internationa""y reco!nised &rod%ct
1%+em5o%r! domici"ed 6-I/S $%nd wit# stron! a&&ea" to !"o5a" investors
)edicated s&ecia"ist investment $irm
E+c"%sive $oc%s on active asset mana!ement o$ "isted e2%ities in Frontier Markets Asia 7c%rrent"y an!"ades#8
&rovidin! a"so advisory services $or Frontier Market investors 7asset mana!ers and owners a"ike8, main"y t#ose
interested in an!"ades# at t#is sta!e
Stron! &artners
Ind%stry "eaders in t#eir $ie"ds c#osen as service &roviders
I. Frontier Markets Asia SwissPro Invest
9
SwissPro Invest
Frontier Markets Asia
www.frontier-markets-asia.com
/#e Investment -ommittee sets t#e macro and !overnance $ramework and monitors a"" areas o$ t#e investment
&ro!ram. /#e Investment /eam was esta5"is#ed wit# t#e #irin! o$ (akim *a#man and :an ;immermann.
Investment Team Title Responsibility ocation
!ears
"#perience
"$%cation&'e(ree&Relevant "#perience
(akim *a#man Port$o"io Mana!er
Port$o"io
Mana!ement
)#aka <
A 6niversity o$ )#aka, -FA= an!"ades#i
F%nd mana!er worked in $%ndamenta" ana"ysis
:an ;immermann Port$o"io Mana!er
Port$o"io
Mana!ement
Frank$%rt <
MA (eide"5er! 6niversity= >erman
F%nd mana!er wit# $oc%s on risk?"i2%idity mana!ement and
&ort$o"io constr%ction
S#owvonick )atta *esearc# Ana"yst *esearc# )#aka 4
MPA )eakin 6niversity, Me"5o%rne= an!"ades#i
@orked in 5rokera!e as researc# ana"yst
Sa!ar A%ma A%nd% *esearc# Associate *esearc# )#aka 9
A, Nationa" 6niversity, )#aka= an!"ades#i
@orked as acco%ntant
I. Frontier Markets Asia SwissPro Invest
Investment )ommittee Title ocation
!ears
"#perience
Relevant "#perience
-#ristian Fort#%5er -#air Frank$%rt 39
-#airman o$ SwissPro Invest, 'ice -#airman o$ SwissPro Asset Mana!ement,
$ormer investment 5anker
A" Mar%$ A#an )irector )#aka 3B
Former President o$ -#itta!on! Stock E+c#an!e, -#airman -MS1 Sec%rities, 'ice
-#airman N) -a&ita", -#airman Nationa" Ener!y Services
Mam%n *as#id Senior Adviser )#aka 3<
Former -E. and -o%ntry .$$icer o$ -iti5ank N.A. an!"ades#= President, -#airman,
'ice -#airman, and )irector o$ severa" oards
Anis A. A#an Senior Adviser )#aka 91
M) and -E. o$ M%t%a" /r%st ank= -#airman, 'ice -#airman and )irector o$
severa" oard o$ )irectors
C
SwissPro Invest
Frontier Markets Asia
www.frontier-markets-asia.com
>o"dman Sac#s N-11 and :PMor!an Frontier Five t#e case o$ an!"ades#
*e#t ++
,an(la$es- "(ypt In$onesia Iran
Me#ico *i(eria Pakistan P-ilippines
So%t- .orea T%rkey /ietnam
,an(la$es- .a0ak-stan
.enya *i(eria
/ietnam
II. *-++1 an$ 2Frontier Five1
Frontier Five
D
SwissPro Invest
Frontier Markets Asia
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III. "conomy in ,an(la$es- offers o%tstan$in( lon(-term
(rowt- opport%nities
E an!"ades# was c%s#ioned $rom any si!ni$icant im&act wit# an avera!e ann%a" !rowt# o$ 4.3 &ercent in rea"
terms in t#e "ast $ive years
E Acce"eratin! >)P !rowt# tar!et o$ B.9 &ercent $or 301C?301D is 5ased on stron! e+&ort, ind%stria" and services
!rowt# and increasin! domestic demand wit# an in$"ation tar!et o$ 4.0 &ercent
E 'ery ro5%st &er$ormance in e+&ort earnin!s is "ed 5y !arments $o""owed 5y F%te, $roGen $ood, a!ric%"t%ra"
&rod%cts, $ootwear, and "eat#er &rod%cts
E *emittances $rom overseas workers are a key so%rce o$ domestic demand
Source: Bangladesh Bank, Bangladesh Bureau of Statistics Source: Bangladesh Bank, Bangladesh Bureau of Statistics (Amounts in million USD)
4.3
D.B
4.1
4.B
4.9
4.0
0.0
1.0
3.0
9.0
C.0
D.0
4.0
B.0
<.0
H.0
10.0
300B-0< 300<-0H 300H-10 3010-11 3011-13 3013-19
*ea" >)P !rowt# 7I8
4
SwissPro Invest
Frontier Markets Asia
www.frontier-markets-asia.com
E *ate o$ %r5anisationJ 9,DI
ann%a""y
E *a&id %r5anisation
s&%rrin! demand $or
#o%sin! and !oods and
services across a"" sectors
Source: UN Population Division, orld Population Prospects: !he "#$" %evision
E Median a!e o$ &o&%"ation in an!"ades# is 3C.3 years
E /#e co%ntry #as over 4CI o$ itKs &o&%"ation 5etween t#e a!es o$ 1D and 4C, t#e most economica""y &rod%ctive
a!e !ro%&
III. "conomy in ,an(la$es- offers o%tstan$in( lon(-term
(rowt- opport%nities
E /ota" &o&%"ationJ 1D9,400,000
E Po&%"ation !rowt#J 1.DI &.a.
E Median a!eJ 3C.3 years
E 1i$e e+&ectancy at 5irt#J 4<.4
years
Source: U&S& 'ensus Bureau, (nternational Data Base
B
SwissPro Invest
Frontier Markets Asia
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Source: (nternational )a*our +rganisation, August "#$,
E Mont#"y minim%m wa!es in t#e !arment ind%stry $or se"ected co%ntries 6S L
E Fisca" de$icit o$ >)P is on avera!e C0I $inanced t#ro%!# e+terna" de5t
E an!"ades# #as "ow &%5"ic de5t to >)P ratio in com&arison to deve"o&ed co%ntries and even in com&arison to
India and 'ietnam
III. "conomy in ,an(la$es- offers o%tstan$in( lon(-term
(rowt- opport%nities
Source: -inistr. of /inance, Bangladesh Source: '(A orld /act*ook 0 (nvest -undi
<
SwissPro Invest
Frontier Markets Asia
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I/. 3istorically low correlation to "mer(in( an$ 'evelope$ Markets
Source: SP( *ased on Bloom*erg data
'ery "ow or even ne!ative corre"ation wit# deve"o&ed, emer!in! and ot#er $rontier e2%ity markets
H
SwissPro Invest
Frontier Markets Asia
www.frontier-markets-asia.com
Source: SP( *ased on Bloom*erg data
Sam&"e siGesJ
M 10C<
MM 3BC
An e+&os%re to an!"ades# as seen in t#e case o$ t#e )SE >enera" Inde+?)SE0 Inde+ 7'4"*8
si!ni$icant"y im&roves risk adF%sted ret%rns
Norma" MarketM Fa""in! MarketMM
I/. 3istorically low correlation to "mer(in( an$ 'evelope$ Markets
10
SwissPro Invest
Frontier Markets Asia
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/. Recent market consoli$ation offers e#cellent entry
point for investors
E For "on!-term investors "ookin! to &artici&ate in t#e an!"ades# !rowt# story now is as !ood a time to start
acc%m%"atin!
E Stock market ret%rned 304I since :an 300B 714.13I &.a.8
Source: Dhaka Stock 12change
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11
SwissPro Invest
Frontier Markets Asia
www.frontier-markets-asia.com
/I. Fact S-eet ,an(la$es-5 )apital Market
an$ '-aka Stock "#c-an(e
ocation .ey Facts
E Pop%lation6 1D9.4 mi""ion 7<
t#
"ar!est in t#e @or"d8
w#ere near"y 40I 5ein! %nder 3D years, 9I over 4D
E an$ Area6 1CB,DB0 s2 km
E Main )ities6 )#aka 719 mi""ion8, -#itta!on! 7D mi""ion8
E an(%a(es6 HDI an!"a. En!"is# wide"y s&oken
E "t-nically -omo(eneo%s6 H<.HI en!a"is
E Reli(io%sly -omo(eneo%s6 <H.BI M%s"im, H.3I (ind%,
1I %dd#ists and -#ristians
E Total a$%lt literacy rate6 DCI, No%t# 71D-3C years8
"iteracy rate B3I 76NI-EF 300B stats8
E -"ose &ro+imity to India and -#ina, si!ni$icant tradin! &artners
E S&i""-over e$$ect o$ e+ce&tiona" !rowt# environment in t#e re!ion
E -omm%ta5"e distance 5etween an!"ades# and key Asian and >-- cities
,eneficial ocation at t-e 3eart of 2)-in$ia1
13
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Frontier Markets Asia
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Stock market is o&en to $orei!n investors wit# $%"" re&atriation o$ sa"e &roceeds 7inc". ca&ita" !ains and dividends8
o$ s#ares o$ "isted com&anies
100I $orei!n owned com&anies are a""owed
an!"ades# is ranked O33 o%t o$ 1<H economies $or &rotectin! investors
1
= India ranked O9C, -#ina ranked OH<,
'ietnam ranked O1DB
'-aka Stock "#c-an(e 7'S"8
Main stock e+c#an!e o$ an!"ades#
incor&orated in 1HDC
N%m5er o$ "isted Sec%rities
E2%ities
D9H
34D
.&en $or tradin! S%nday t#ro%!# /#%rsday
5etween 10.90am 3.90&m
M%t%a" F%nds
/reas%ry onds
C3
331
A%tomated /radin! started in :an%ary 3001
$or 39< Mem5ers
-or&orate onds
)e5ent%res
9
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)-itta(on( Stock "#c-an(e 7)S"8
E an!"ades#Ks newest e+c#an!e
incor&orated in A&ri" 1HHD
E 1ocated in t#e &ort city o$ -#itta!on! in
so%t# eastern an!"ades#
E Since 300C Internet 5ased tradin!
system
1 @or"d ank Doing Business "#$3 *e&ort
/I. Fact S-eet ,an(la$es-5 )apital Market
an$ '-aka Stock "#c-an(e
19
SwissPro Invest
Frontier Markets Asia
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Recent Market Statistics 79+ :%ly ;<+=8
E )SE Market -a& 7E2%ities8J 6S) 90.35n
E )SE0 &er$ormance N/)J 9.<I
E Ave. )ai"y /%rnover o$ "ast 30 daysJ 6S) D1.Cm
E Market -a& Free F"oatJ C0.1I
E Market Forward PEJ 1C.<
E >rameen&#one 6S) D.495n
E A/ 6S) 1.<H5n
E S2%are P#arma 6S) 1.<95n
E 1a$ar!e S%rma 6S) 1.3<5n
E I- 6S) 0.HB5n
So%rceJ )SE
Market )apitalisation by Sector 79+ :%ly ;<+=8
ar(est Stocks 79+ :%ly ;<+=8
E 1ankaan!"a Sec%rities
E I- Sec%rities /radin!
E *A--EP1 Stock rokera!e
E AI1 -a&ita" Markets Services
E I)1- Sec%rities
ar(est ,rokers 7by t%rnover8
/I. Fact S-eet ,an(la$es-5 )apital Market
an$ '-aka Stock "#c-an(e
Mont-ly T%rnover > '4"*&'S"?
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1H.3I
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1D.HI
P#armace%tica
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13.BI
Food P A""ied
<.1I
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C.HI
1C
SwissPro Invest
Frontier Markets Asia
www.frontier-markets-asia.com
/II. O%r Investment P-ilosop-y an$ Process
@e #ave con$idence t#at an!"ades# wi"" 5e o$$erin! investors o%tstandin! lon(-term economic (rowt-
@e 5e"ieve t#e o&tima" way to ca&t%re t#e co%ntryKs !rowt# &otentia" is to em&"oy an active mana(ement a&&roac#
5ased on $%ndamenta" ana"ysis, stron! risk mana!ement com5ined wit# on t#e !ro%nd &resence and active "on!-
term oriented stock se"ection in order to "et investors &artici&ate in t#e deve"o&ment o$ t#e co%ntry
@e im&"ement o%r active $%ndamenta" sty"e %sin! a bottom-%p approac-
/#e pillars o$ o%r investment &#i"oso&#y areJ
A trans&arent investment &rocess, w#ic# a""ows c"ients to kee& track o$ o%r investment decisions
A 5road diversi$ication o$ investment decisions, w#ic# #e"&s to "imit risks
An active &ositionin!, aimin! at ac#ievin! a5ove-avera!e ret%rns over t#e "on! r%n
-onsistent risk contro" t#ro%!#o%t t#e entire investment &rocess w#ic# a"so $oresees $orensic researc# in t#e
$%t%re, a cr%cia" &oint in $rontier markets w#ere !overnance standards are not yet esta5"is#ed
1D
SwissPro Invest
Frontier Markets Asia
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Investment
%niverse
Investment
%niverse
Portfolio
)onstr%ction
Portfolio
)onstr%ction
Portfolio Portfolio
F%n$amental
Analysis
F%n$amental
Analysis
Risk
Analysis
Risk
Analysis
T-ro%(-o%t t-e process5 t-e e#perience$ Investment )ommittee sets t-e macro an$ (overnance framework for o%r
portfolio mana(ers b%t also acts as a so%n$in( boar$ w-en it comes to co%ntry an$ local company specific insi(-ts
,ase$ on t-e selection process w-ic- incorporates li@%i$ity meas%res t-e %niverse s-rinks from aro%n$ ;A9
to 9<-=< $iversifie$ stocks w-ic- meet o%r financial an$ non-financial criteria
/II. O%r Investment P-ilosop-y an$ Process
14
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-%rrent"y 349 com&any s#ares in cate!ories A, , N and ; are "isted on t#e )#aka Stock E+c#an!e
A s#aresJ re!%"ar A>M, dividend Q10 &ercent= s#aresJ re!%"ar A>M, dividend R10 &ercent= N s#aresJ
new"y "isted com&anies= ; s#aresJ no A>M or no dividend or distressed sit%ation
@e consider investment in cate!ories A, and N s#ares w#ic# com&rises o$ 39D com&anies. /#is %niverse
wi"" 5e reviewed every t#ree mont#s.
All companies liste$ on t-e '-aka Stock "#c-an(e
/II. O%r Investment P-ilosop-y an$ Process
Step + Step ; Step 9
Investment
%niverse
Portfolio
1B
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F%n$amental Analysis )ompany eval%ation %sin( @%alitative > @%antitative criteria
/#is &rocess identi$ies com&anies w#ic# &ossess attri5%tes ca&a5"e o$ de"iverin! s%staina5"e and attractive
!rowt# 5ased on $%ndamenta" c#aracteristics s%c# as 5a"ance s#eet in$ormation, income and cas#
statements.
Periodica" interviews wit# Mem5ers o$ t#e Mana!ement oard
Ana"ysis o$ macro economic and &o"itica" environment and in&%t $rom t#e Investment -ommittee re!ardin!
macro $actors
)ia"o!%e wit# economic advisers o$ t#e &%5"ic sector, e.!. Economics A$$airs Adviser o$ t#e Prime Minister,
and ot#er m%"ti&"iers in t#e market to 5etter adF%st o%r macro view.
Step + Step ; Step 9
Investment
%niverse
Portfolio
/II. O%r Investment P-ilosop-y an$ Process
1<
SwissPro Invest
Frontier Markets Asia
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Bberblick Performance Sales S%pport
F%n$amental
Analysis
Step ; Step 9
Aey risk indicators $or market risk and "i2%idity risk are 5ein! meas%red and 2%anti$ied 7'o"ati"ity, 'a"%e-at-
*isk, market "i2%idity and tradin! activity8
/ai"ored risk ana"ytics and estimation mode" $or vo"ati"ity and covariance
Market "i2%idity risk and im&act mode" &rovides insi!#t #ow to 5%i"d and %nwind &ositions in order to
red%ce e+ec%tion s"i&&a!e 7ty&e o$ order de&ends on "i2%idity o$ com&any8
Pro-active risk ana"ysis #e"&s to avoid risk concentration
Risk Analysis
Investment
%niverse
Portfolio
/II. O%r Investment P-ilosop-y an$ Process
1H
SwissPro Invest
Frontier Markets Asia
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Bberblick Performance Sales S%pport
F%n$amental
Analysis
Risk
Analysis
Step 9
.&timiGation mode" &rovides a trans&arent met#odo"o!y $or m%"ti-"eve" diversi$ication inde&endent $rom a
sin!"e market sector, sty"e or trend
Port$o"io o&timiGation 5ased on estimated vo"ati"ity and covariance com5ined wit# "i2%idity metrics
Investment restrictions are taken into acco%nt to meet re!%"atory re2%irements 76-I/S risk contro"s, 6-/IS
investment restrictions8 and se"$-im&osed r%"es 7intrinsic va"%e #i!#er t#an market &rice, tar!et sector
wei!#ts, 5%i"d &osition wit# ma+ 3DI o$ A)'8
Portfolio )onstr%ction
Investment
%niverse
Portfolio
/II. O%r Investment P-ilosop-y an$ Process
30
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(o"din!s ty&ica""y ran!e $rom 90 to C0 stocks diversi$ied across as many as 1C ind%stry !ro%&s
Systematica""y re5a"ance to avoid 5%i"d-%&s and red%ce &ort$o"io concentration. A 3DI deviation $rom
tar!et wei!#t tri!!ers review o$ #o"din! and adF%stment to tar!et wei!#t
-onstant monitorin! o$ "i2%idity and 6-I/S investment r%"es and restrictions
Port$o"io mana!er is t#e $ina" decision maker $or a"" 5%ys and se""s
T-e obCective is a well $iversifie$ portfolio capable of $eliverin( attractive (rowt-
/II. O%r Investment P-ilosop-y an$ Process
Bberblick Performance Sales S%pport
F%n$amental
Analysis
Risk
Analysis
Portfolio
)onstr%ction
Investment
%niverse
Portfolio
31
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/III. T-e SPI ,an(la$es- F%n$
O%r Partner
7one o$ >ermanySs "ar!est 5anks and
its w#o""y owned s%5sidiary8
M 1?9 o$ &er$ormance $ees are direct"y assi!ned to s%&&ort socia" &roFects in an!"ades#
E /#e worl$Ds first E)ITS-compliant investment f%n$ wit# $oc%s on an!"ades#
E /#is o&en-end e2%ity $%nd %ti"ises o%r "oca" e+&ertise in investin! in com&anies "isted on t#e '-aka Stock "#c-an(e
and com&"ements o%r advisory services $or asset mana!ers and owners a"ike w#o are interested in investin! in
an!"ades#
E /#e $%nd is domici"ed in %#embo%r( and is ES-F denominated
E /#e $%nd aims to attract international investors wit# easy access to t#e ,an(la$es- capital market
E A $oc%sed, e+&erienced, and '-aka base$ teamis more "ike"y to de"iver o%tstandin! &er$ormance
E -"ear"y de$ined investment strate!y and str%ct%re$ investment process
33
SwissPro Invest
Frontier Markets Asia
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E Easy and convenient access to Frontier Market via 6-I/S $%nd
E )ai"y &%rc#ase and sa"e o$ t#e $%nd %nits at *A/, no 5id?o$$er s&read, no commission, no "i2%idity constraints
E S&ecia" $%nd, no co%nterparty risk
E *one o$ t#e 5e"ow is re2%ired $or $orei!n investors
.&en ene$iciary
.wners 7.8 Acco%nt
wit# rokera!e (o%se
.&en Non-*esident
Investors /aka Acco%nt
7NI/A8
.&en Forei!n -%rrency
7F-8 Acco%nt
.&en a -%stodian
Acco%nt wit# re!istered
-%stodian
3ow to Invest in ,an(la$es-
)apital Market
/III. T-e SPI ,an(la$es- F%n$
39
SwissPro Invest
Frontier Markets Asia
www.frontier-markets-asia.com
SPI an!"ades# F%nd Sector A""ocation 7I8
Absol%te Gei(-ts
As at ,$ 4ul. "#$3
Source: SP(& eights as of date sho5n and do not necessaril. represent current or future portfolio holdings&
Relative to 'S" ,roa$ In$e#
/III. T-e SPI ,an(la$es- F%n$
C.0I
C.3I
C.CI
C.DI
C.BI
4.1I
4.1I
4.HI
B.BI
<.3I
*. N. S&innin! Mi""s
ritis# American /o5acco
an!"ades#
Is"ami ank an!"ades#
/itas >as
6nited -ommercia" ank
S2%are P#armace%tica"s
e+imco P#armace%tica"s
*A- ank
>rameen&#one
S*M Stee"
B.D
0.9
-0.C
-9.1
0.0
-3.4
3.C
-<.B
-1.3
1.D
C.C
-as#
6ti"ities
/e"ecomm%nication Services
Materia"s
In$ormation /ec#no"o!y
Ind%stria"s
(ea"t# -are
Financia"s
Ener!y
-ons%mer Sta&"es
-ons%mer )iscretionary
3C
SwissPro Invest
Frontier Markets Asia
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4rameenp-one
E /#e com&any o$$ers ce""%"ar te"e&#one services
to 5ot# r%ra" and %r5an c%stomers in
an!"ades#. /#e com&any a"so &rovides
Internet access via mo5i"e te"e&#ones
E S#are#o"dersJ DD.<I /e"enor, 9C.3I >rameen
/e"ecom, 10I !enera" &%5"ic
E 1ar!est mo5i"e o&erator wit# C3.3I market
s#are and C<.B mio s%5scri5ers 7Marc# 301C8
E EI/)A mar!in is D1.9I in 3019 wit# EPS o$ )/
10.H. /#e com&any dec"ared $%"" year $ina" cas#
dividend o$ )/ 1C &er s#are
E Market ca& o$ 6S) 9.B45n
,RA) ,ank
E *A- ank is a $%"" service Private -ommercia"
ank and attracts de&osits $rom t#e !enera"
&%5"ic and %ses t#ose $%nds to ori!inate a wide
variety o$ "oans
E S#are#o"dersJ D0.0I S&onsors?)irectors 7C9.<I
*A-, D.CI IF-, 0.HI S#ore -a& Internationa"8,
D.4I instit%tions, CC.CI !enera" &%5"ic
E SME "oan $oc%sed 5%siness mode" a""ows t#e
com&any to c#ar!e #i!#er "endin! rate and t#%s
#i!#er s&read 7B.<I in 30198 and Net Interest
Mar!in 74.1I in 30198
E EPS o$ )/ 9.3 in 3019. /#e com&any dec"ared
10I cas# and 10I stock dividend in 3019
E Market ca& o$ 6S) 19<mio
Stock E+am&"es
/III. T-e SPI ,an(la$es- F%n$
3D
SwissPro Invest
Frontier Markets Asia
www.frontier-markets-asia.com
I?. Risk5 its analysis5 its mana(ement an$ t-e Importance of i@%i$ity
E No%n!er and less establis-e$ $emocracy sti"" at t#e 5e!innin! o$ t#e re$orm &attern and wit# a "imited track
record o$ o&eratin! in t#e !"o5a" economy
E Politics is t#e main risk. Po"itica" strikes and $emonstrations e+ist simi"ar to ot#er emer!in! market co%ntries
wit# $ewer nationa" s#%tdowns in recent years t#o%!#
E )limate c-an(e and nat%ral $isasters remain areas o$ risk. an!"ades# wi"" contin%e to stren!t#en its ada&tion
and miti!ation e$$orts to minimiGe t#e im&acts
E *e"ative"y %ndeve"o&ed financial market wit# a #i!#er de!ree o$ intrinsic risk
F%nd investment &arametersJ
E 30 to 40 stocks
E No sin!"e #o"din! Q 10I o$ tota" assets
E Any #o"din!s Q DI o$ $%nd in a!!re!ate m%st not e+ceed C0I o$ tota" assets
E Market ca&ita"isation o$ com&any not "ess t#an 6SL 100mio
E Ma+ 10I &ermitted in recent"y iss%ed trans$era5"e sec%rities wit# an intention to "ist wit#in one year
E -%rrency e+&os%re "e$t %n#ed!ed
34
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A &ort$o"io wit# -i(- li@%i$ity by $esi(n to kee& t#e a"&#a !eneration ca&acity 5y %se o$ proprietary market
impact mo$el inc"%din! vo"ati"ity and "i2%idity metrics
6-I/S com&"iant $%nd &rovides $aily li@%i$ity wit# no constraints $or investors
Based on the assumption of US67 "8mio fund si9e
I?. Risk5 its analysis5 its mana(ement an$ t-e Importance of i@%i$ity
<3I
1CI
CI
1I
0I
0I
10I
30I
90I
C0I
D0I
40I
B0I
<0I
H0I
100I
)ay 1 )ay 3 )ay 9 )ay C )ay D
*%mber of $ays to li@%i$ate t-e portfolio
3B
SwissPro Invest
Frontier Markets Asia
www.frontier-markets-asia.com
Formed as a res%"t o$ a &erceived social responsibility towards t#e &eo&"e o$ an!"ades#, a c-aritable fo%n$ation
name$ Alin(an is t#e creation o$ Aarin /o""in!er, -#ristian Fort#%5er and SwissPro Invest, o%r )#aka 5ased
investment mana!ement com&any
A $i+ed &ercenta!e o$ t#e incentive $ees &aid 5y investors to SwissPro Invest are direct"y assi!ned to s%&&ort social
proCects in ,an(la$es- and t#%s constit%te a kind o$ ;akat, i.e. distri5%tion o$ &ro$its 5ack to t#e needy
E SwissPro Invest aims to work wit# c#arita5"e or!anisations and &#i"ant#ro&ists on t#ree t#emes t#at we 5e"ieve
to 5e instr%menta" in addressin! t#e -%man nee$s o$ an!"ades#J
(ea"t#
Ed%cation
Poverty
?. Investments wit- a 2SO)IA IMPA)T1
3<
SwissPro Invest
Frontier Markets Asia
www.frontier-markets-asia.com
4et rea$y to enter ,an(la$es-
(ead o$$ice
*a#manTs *e!n%m -entre 74t# F"oor8
1H1?, /eF!aon >%"s#an 1ink *oad
)#aka -130<
an!"ades#
P#oneJ U<<0 3 <<B <HHD
E-Mai"J investorsVswiss&roinvest.com
@e5siteJ www.$rontier-markets-asia.com
E%ro&ean o$$ice
@a"t#er-von--ron5er!-P"atG 19
40DHC Frank$%rt?Main
>ermany
P#oneJ UCH 4H 9<0 HB D3 HB
E-Mai"J investorsVswiss&roinvest.com
@e5siteJ www.$rontier-markets-asia.com
IMP.*/AN/ INF.*MA/I.NJ /#e in$ormation contained #erein #as 5een &re&ared 5y SwissPro Invest
1imited 7-om&any8 and is con$identia". /#e in$ormation #erein is made avai"a5"e on"y on t#e 5asis t#at
none o$ t#e in$ormation contained in it may 5e &%5"is#ed, re&rod%ced, re-distri5%ted, co&ied, disc"osed
or &assed to any ot#er &erson or &%5"is#ed in w#o"e or in &art $or any &%r&ose. y acce&tin! recei&t o$
t#is doc%ment, yo% a!ree to 5e 5o%nd 5y t#e "imitations and restrictions set o%t.
/#e in$ormation contained #erein #as not 5een a&&roved 5y any "istin! a%t#ority or any investment
re!%"ator. /#e in$ormation is intended $or disc%ssion &%r&oses on"y and does not constit%te or $orm &art
o$ any o$$er to se"" or invitation to s%5scri5e $or, %nderwrite or &%rc#ase any s#ares in t#e SPI
an!"ades# F%nd 7WF%ndW8. Any decision to make any s%c# investment m%st 5e 5ased so"e"y on t#e
investorXs own en2%iries and on t#e contents o$ t#e F%ndXs in$ormation memorand%m in its entirety,
%sin! t#e a&&"ication $ormre$erred to in it.
No %ndertakin!, re&resentation, warranty or ot#er ass%rance, w#et#er e+&ress or im&"ied, is made or
!iven 5y or on 5e#a"$ o$ t#e -om&any or any o$ its directors, o$$icers, &artners, em&"oyees, a!ents or
advisers or any ot#er &erson as to t#e acc%racy, re"evance or com&"eteness o$ t#e in$ormation or
o&inions contained #erein and no res&onsi5i"ity or "ia5i"ity is acce&ted 5y any o$ t#em $or any s%c#
in$ormation or o&inions or $or any errors, omissions, misstatements, ne!"i!ence or ot#erwise $or any
ot#er comm%nication written or ot#erwise..
An investment in t#e F%nd is a #i!#-risk investment and on"y s%ita5"e $or &ro$essiona" and so&#isticated
investors w#o are aware o$ and %nderstand t#e risks invo"ved and w#o are a5"e to wit#stand t#e "oss o$
t#eir entire invested ca&ita". /#ere can 5e no ass%rance t#at t#e F%nd wi"" ac#ieve its investment
o5Fective. /#e va"%e o$ s#ares in t#e F%nd and t#e income derived $rom t#em can !o down as we"" as %&
and investors may not !et 5ack some or a"" o$ t#eir investment. I$ yo% are in any do%5t a5o%t makin!
s%c# an investment, yo% s#o%"d cons%"t an a%t#orised &erson s&ecia"isin! in advisin! on investments o$
t#is kind. Not#in! in t#is in$ormation is intended to constit%te or 5e re"ied on as investment advice.
Neit#er t#ese &a!es nor any co&y o$ t#em may 5e taken or transmitted into or distri5%ted in any
F%risdiction w#ere t#e distri5%tion o$ s%c# materia" wo%"d 5e &ro#i5ited %nder t#e F%risdictionKs
a&&"ica5"e sec%rities "aws. Any $ai"%re to com&"y wit# t#is restriction may constit%te a vio"ation o$
nationa" sec%rities "aws.
T-e information in t-is $oc%ment may c-an(e at any time.
3H
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?I. Appen$i# ,an(la$es-i Taka )%rrency 'evelopment
E Sta5"e an!"ades#i /aka &er 6.S. )o""ar e+c#an!e rate s%&&orts e+&ort com&etitiveness
Source: Bangladesh Bank, Bangladesh Bureau of Statistics
0
30
C0
40
<0
100
130
1C0
:an-0B :an-0< :an-0H :an-10 :an-11 :an-13 :an-19 :an-1C

)
/
an!"ades#i /aka E+c#an!e *ates
)/?6S) )/?E6*
90
SwissPro Invest
Frontier Markets Asia
www.frontier-markets-asia.com
?I. Appen$i# E)ITS6 'efinition an$ Framework
E 6-I/S stands $or YEndertakin!s $or )o""ective Investment in Trans$era5"e Sec%rities
E It is a set o$ "%ropean Enion $irectives t#at aim to a""ow co""ective investment sc#emes to o&erate $ree"y
t#ro%!#o%t t#e E6 on t#e 5asis o$ a sin!"e a%t#orisation $rom one mem5er state
E /#e ori!ina" 6-I/S directive was "a%nc#ed in 1H<D, E)ITS I/ #as 5een a&&roved 5y t#e E%ro&ean Par"iament in
300H, to 5e implemente$ in ;<++
E Since its "a%nc#, 6-I/S #as 5ecome a bran$ reco!nised aro%nd t#e wor"d as a we""-re!%"ated investment ve#ic"e
s%ita5"e for cross-bor$er $istrib%tion to a"" "eve"s o$ investors
E /#e s%ccess o$ 6-I/S is "ar!e"y d%e to t#e ro5%stness and ade2%acy o$ t#e le(al framework 5ein! t#e most
trans&arent investment $%nd &rod%ct wit# $oc%s on investor &rotection
E ,est e#ec%tion s&eci$ies e+ec%tion &rinci&"es to im&"ement tradin! decisions in order to $%rt#er im&rove investor
&rotection. -#oice o$ minim%m t#ree tradin! &artners to ac#ieve t#e 5est &ossi5"e res%"t
E 'aily "i2%idity ena5"es investor t#e p%rc-ase an$ sale o$ t#e $%nd %nits at *A/ on any !iven 5%siness day
E 'iversification ratioJ Investment "imit o$ 10I o$ t#e assets invested in trans$era5"e sec%rities iss%ed 5y t#e same
iss%er= any investment o$ more t#an DI o$ t#e assets in a!!re!ate m%st not e+ceed C0I o$ t#e va"%e o$ t#e assets=
ma+im%m o$ 30I o$ t#e assets may 5e de&osited wit# t#e same instit%tion
E ,orrowin( limitJ %& to 10I o$ net assets on a tem&orary 5asis on"y
E Risk mana(ement re2%irementJ 6-I/S m%st em&"oy a risk mana!ement &rocess w#ic# ena5"es it to monitor and
meas%re at any time t#e risk o$ t#e &ositions and t#eir contri5%tion to t#e overa"" risk &ro$i"e o$ t#e &ort$o"io
E Ta#ation o$ t#e investorsJ No wit##o"din! ta+ on interest &ayments, no income ta+ on dividends or ot#er
&ayments derived $rom t#e s#ares?%nits in t#e 6-I/S
91
SwissPro Invest
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?I. Appen$i# 3ow to invest in t-e SPI ,an(la$es- F%n$ = step process
); P*I'A/ANA 1%+
-%stodian ? /rans$er A!ent
E%ro&ean
-orres&ondent ank
1. Instr%ct t#e &%rc#ase o$
$%nd %nits $rom );
P*I'A/ANA 1%+
-%stomer ank
9. -on$irmation o$ &%rc#ase,
de"ivery o$ $%nd %nits and
trans$er o$ 6S-L to );
P*I'A/ANA
C. -on$irmation o$ &%rc#ase,
de"ivery o$ $%nd %nits and
trans$er o$ 6S-L to E%ro&ean
-orres&ondent ank
3. Instr%ct t#e &%rc#ase o$
$%nd %nits
1. Provide yo%r 5ank or 5roker o$ c#oice wit# t#e $o""owin! in$ormation, so yo% can &%rc#ase t#e $%nd %nits via
E%ro&ean -orres&ondent ank $rom ); P*I'A/ANA in 1%+em5o%r!J
/#e name o$ t#e investment $%nd SPI ,an(la$es- F%n$
/#e ISIN code o$ t#e investment $%nd E<HIA;JI==<
Amo%nt yo% wis# to invest ES-F
3. E%ro&ean -orres&ondent ank instr%cts ); P*I'A/ANA a5o%t &%rc#ase o$ $%nd %nits
9. ); P*I'A/ANA con$irms &%rc#ase and de"ivers $%nd %nits to E%ro&ean -orres&ondent ank w#ic#, in ret%rn,
trans$ers 6S-L to ); P*I'A/ANA
C. E%ro&ean -orres&ondent ank con$irms &%rc#ase and de"ivers $%nd %nits to -%stomer ank w#ic#, in ret%rn,
trans$ers 6S-L to E%ro&ean -orres&ondent ank