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Nine more MFs tenure extended another 10 years

FE Online Report | Published: August 08, 2019 12:17:18 | Updated: August 11, 2019 12:15:26


The tenure of nine more closed-end mutual funds, managed by Bangladesh RACE Management, have been extended for another 10 years each, said an official disclosure on Thursday.

Closed-end mutual funds are investment funds that gather a fixed pool of money for 10 years from a number of investors and re-invest them into stocks, bonds and other assets.

The closed-end mutual funds are: AB Bank 1st Mutual Fund, EBL NRB Mutual Fund, PHP First Mutual Fund, Popular Life First Mutual Fund, Exim Bank 1st Mutual Fund, First Bangladesh Fixed Income Fund, 1st Janata Bank Mutual Fund, IFIC Bank 1st Mutual Fund and Trust Bank 1st Mutual Fund.

Bangladesh RACE Management PCL, the asset manager of these funds, has informed that by order of the government, the BSEC through the exercise of its power accorded by the Securities and Exchange Ordinance, 1969 (XVII of 1969) Section 20A has given consent to extend the tenure of these existing mutual funds for another 10 years each in relaxation of all applicable rules & regulations and procedures.

In continuation, AB Bank 1st Mutual Fund is declared extended up to January 10, 2032, according to the disclosure.

The tenure of EBL NRB Mutual Fund is declared extended up to May 15, 2031.

In continuation, PHP First Mutual Fund is declared extended up to November 24, 2030.

Popular Life First Mutual Fund’s tenure is declared extended up to October 18, 2030.

In continuation, EXIM Bank 1st Mutual Fund is declared extended up to June 26, 2033.

The tenure of the First Bangladesh Fixed Income Fund is declared extended up to February 21, 2032.

In continuation, the First Janata Bank Mutual Fund is declared extended up to September 19, 2030.

The IFIC Bank 1st Mutual Fund is declared its tenure extended up to March 31, 2030.

In continuation, the Trust Bank 1st Mutual Fund is declared extended up to January 26, 2030.

Earlier in September 2018, the stock market regulator has given a go-ahead to the extension of the tenure of closed-end mutual funds and handed over the right to the asset managers.

In this regard, the Bangladesh Securities and Exchange Commission (BSEC) also issued a directive that time scrapping its previous directive regarding conversion or liquidation of closed-end MFs on completion of tenure of ten years.

The existing closed-end MFs which are unwilling to extend tenure will be allowed to be converted or liquidated as per the rules, the BSEC directive said.

According to BSEC directive, total tenure, including another term of ten years, of the existing closed-end mutual funds will not be more than 20 years.

Currently, 37 closed-end mutual funds are listed on the Dhaka Stock Exchange.

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