NCC Bank to launch NRB Mutual Fund
Wednesday, 16 September 2009
FE Report
Another close-end mutual fund worth Tk 1.0 billion, sponsored by National Credit and Commerce Bank Ltd, is expected to make debut in the stock markets soon to help broaden the depth of the market.
Its board of directors Tuesday decided to sponsor the mutual fund titled 'NCCBL NRB Mutual Fund'.
The announcement came after the NCC Bank, a private commercial bank, declared to float close-end mutual fund worth Tk 1.0 billion a month ago.
The bank, however, needs approval from the Securities and Exchange Commission (SEC) for floating both the mutual funds.
A closed-end mutual fund has a set number of shares issued to the public through an initial public offering (IPO). These funds have a stipulated maturity period generally ranging from three to 15 years.
Listed in 2000, the bank is the latest among a number of private commercial banks planning to float their own mutual funds.
According to the Dhaka Stock Exchange (DSE) website, the bank will subscribe at least 10 per cent of the NCCBL NRB Mutual Fund and the rest will be raised through initial public offering (IPO) and pre-IPO placement. Per unit price of the mutual fund will be Tk 10.
The Venture Investment Partner Bangladesh (VIPB) asset management company will act as the fund manager.
In August, the bank decided to sponsor a mutual fund worth Tk1.0 billion, which is now under process. The bank subscribes 20 per cent of the fund and the rest portion will be raised through pre-IPO and IPO. Per unit price of this fund will also be Tk 10.
LR Global Bangladesh Asset Management Company Ltd acts as the fund manager.
Currently, a total of 18 mutual funds are listed with the bourses. Of them, ICB and its subsidiaries manage 13 mutual funds, AIMS Bangladesh three and BSRS and RACE asset management company one each.
Mutual funds account for 4.47 per cent of DSE's total market capitalisation while turnover seven per cent.
Another close-end mutual fund worth Tk 1.0 billion, sponsored by National Credit and Commerce Bank Ltd, is expected to make debut in the stock markets soon to help broaden the depth of the market.
Its board of directors Tuesday decided to sponsor the mutual fund titled 'NCCBL NRB Mutual Fund'.
The announcement came after the NCC Bank, a private commercial bank, declared to float close-end mutual fund worth Tk 1.0 billion a month ago.
The bank, however, needs approval from the Securities and Exchange Commission (SEC) for floating both the mutual funds.
A closed-end mutual fund has a set number of shares issued to the public through an initial public offering (IPO). These funds have a stipulated maturity period generally ranging from three to 15 years.
Listed in 2000, the bank is the latest among a number of private commercial banks planning to float their own mutual funds.
According to the Dhaka Stock Exchange (DSE) website, the bank will subscribe at least 10 per cent of the NCCBL NRB Mutual Fund and the rest will be raised through initial public offering (IPO) and pre-IPO placement. Per unit price of the mutual fund will be Tk 10.
The Venture Investment Partner Bangladesh (VIPB) asset management company will act as the fund manager.
In August, the bank decided to sponsor a mutual fund worth Tk1.0 billion, which is now under process. The bank subscribes 20 per cent of the fund and the rest portion will be raised through pre-IPO and IPO. Per unit price of this fund will also be Tk 10.
LR Global Bangladesh Asset Management Company Ltd acts as the fund manager.
Currently, a total of 18 mutual funds are listed with the bourses. Of them, ICB and its subsidiaries manage 13 mutual funds, AIMS Bangladesh three and BSRS and RACE asset management company one each.
Mutual funds account for 4.47 per cent of DSE's total market capitalisation while turnover seven per cent.