BGIC seeks BSEC nod to change asset manager of two MFs

FE Report | Published: November 01, 2019 10:39:03 | Updated: November 03, 2019 16:16:14

Bangladesh General Insurance Company (BGIC), the trustee of both DBH 1st Mutual Fund and the Green Delta Mutual Fund, has sought approval from the securities regulator to change the asset manager of these two funds.

The BGIC sent a letter to the Bangladesh Securities and Exchange Commission (BSEC) on Thursday asking for its approval.

LR Global Bangladesh is the asset manager of the funds.

The trustee also asked the asset manager not to invest in any non-listed securities without its permission.

On Monday, over 70 per cent unit holders of both the mutual funds have placed a proposal to the trustee for changing the asset manager.

"The regulatory approval is required to change the asset manager. That's why we have sent a letter to the BSEC seeking its nod," said Ahmed Saifuddin Chowdhury, managing director of the BGIC.

Earlier, three-fourths of the unit holders of the DBH 1st Mutual Fund also proposed holding a meeting for conversion of the fund into an open-ended one.

In response, the trustee sought guidelines from the BSEC in this regard.

The securities regulator then asked the BGIC twice to call unit holders' meeting as per the existing provision of the securities rules.

In the meantime, over two-thirds of unit holders of DBH 1st Mutual Fund and the Green Delta Mutual Fund placed a proposal to the trustee to change the asset manager of both the funds.

BGIC Managing Director Saifuddin Chowdhury said the proposal for changing the asset manager would now get the first priority.

"After changing the asset manager, the trustee will call the unit holders' meeting," he added.


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