SEC to allow open-ended mutual fund in pvt sector
Tuesday, 18 May 2010
FE Report
The securities regulator will allow launching of an open-ended mutual fund for the first time in the private sector.
The Securities and Exchange Commission (SEC) recently approved the trust deed of the Prime Financial First Unit Fund having initial size of Tk 200 million. Face value of each unit will be Tk 100.
The fund will be a traditional open-ended mutual fund without being listed on the stock exchanges and it will be traded through its fund mangers or designated agents.
"The commission has given its nod to the fund manager to launch the open-ended mutual fund for the first time in the private sector," said an SEC official.
Under the open-ended criteria, the fund size may be increased from time to time by the asset management company with due approval of the trustee and notification of the SEC on requisition from the investors.
Prime Finance Asset Management Company will act as the asset management company of the fund.
Prime Finance and Investment Limited will be the sponsor of the fund contributing 15 per cent of the initial size of the unit fund.
Bangladesh General Insurance Company (BGIC) will be the trustee of the fund while BRAC Bank will be the custodian of the fund.
In 1981, the state-owned Investment Corporation of Bangladesh (ICB) introduced open-ended mutual fund.
Subsequently, ICB Asset Management Company, a subsidiary of ICB launched two more unit funds - ICB AMCL Unit Fund and ICB AMCL Pension Holders' Unit Fund.
All resident Bangladeshis both individual and institutional, the Non Resident Bangladeshis (NRBs) and other mutual funds are eligible to purchase units of the fund through the asset management company of the fund.
The investors are also allowed to redeem their holdings directly to the asset management company.
The fund will be invested in listed and non-listed companies incorporated in Bangladesh both in equity and money market instruments as approved by the SEC and Bangladesh Bank.
The securities regulator will allow launching of an open-ended mutual fund for the first time in the private sector.
The Securities and Exchange Commission (SEC) recently approved the trust deed of the Prime Financial First Unit Fund having initial size of Tk 200 million. Face value of each unit will be Tk 100.
The fund will be a traditional open-ended mutual fund without being listed on the stock exchanges and it will be traded through its fund mangers or designated agents.
"The commission has given its nod to the fund manager to launch the open-ended mutual fund for the first time in the private sector," said an SEC official.
Under the open-ended criteria, the fund size may be increased from time to time by the asset management company with due approval of the trustee and notification of the SEC on requisition from the investors.
Prime Finance Asset Management Company will act as the asset management company of the fund.
Prime Finance and Investment Limited will be the sponsor of the fund contributing 15 per cent of the initial size of the unit fund.
Bangladesh General Insurance Company (BGIC) will be the trustee of the fund while BRAC Bank will be the custodian of the fund.
In 1981, the state-owned Investment Corporation of Bangladesh (ICB) introduced open-ended mutual fund.
Subsequently, ICB Asset Management Company, a subsidiary of ICB launched two more unit funds - ICB AMCL Unit Fund and ICB AMCL Pension Holders' Unit Fund.
All resident Bangladeshis both individual and institutional, the Non Resident Bangladeshis (NRBs) and other mutual funds are eligible to purchase units of the fund through the asset management company of the fund.
The investors are also allowed to redeem their holdings directly to the asset management company.
The fund will be invested in listed and non-listed companies incorporated in Bangladesh both in equity and money market instruments as approved by the SEC and Bangladesh Bank.