Investasia Capital, 2 MFs come under scrutiny

FE REPORT
The stock market watchdog has launched an investigation to find out irregularities linked to two open-ended mutual funds and the asset manager and the custodian of the funds.
A three-member enquiry committee will have to submit a probe report in 60 days, according to an order issued by the Bangladesh Securities and Exchange Commission (BSEC) on Monday.
The two funds are Investasia Growth Fund and Investasia Balanced Unit Fund, launched in 2022 and 2023.
The asset manager and sponsor of the funds is Investasia Capital & Asset Management Ltd. The trustee and custodian is Sentinel Trustee and Custodial Services Ltd.
The securities regulator asked the committee to find out whether the asset manager broke any mutual fund rules while managing the MFs.
The enquiry committee will also have to find whether the fund manager violated the trust deeds.
The committee will also see if any unlawful investment was made through the two funds and whether key management personnel including the MD/CEO of Investasia Capital & Asset Management Ltd were involved in any unlawful activities.
The activities of trustee, custodian, role of independent external auditor and anyone relevant will come under the purview of the probe.
The three member committee includes Mohammad Amdadul Hoque, additional director, BSEC; Md. Rafiqunnabi, deputy director, BSEC, and Md. Sakil Ahmed, assistant director of BSEC.
Investasia Capital Asset Management got its licence in 2009 from the BSEC.
According to its website, it has only two funds under its management. Both of them are under investigation, according to Monday's order.
Investasia Growth Fund's initial size was Tk 250 million, launched and subscribed in 2022. According to the latest financial statement, more than 40 per cent of its assets are invested in One bank.
Investasia Balanced Unit Fund's initial size was Tk 500 million, launched and subscribed in 2023.
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