Published :
Updated :
For all latest news, follow The Financial Express Google News channel.
The stock market regulator has approved the draft prospectus of a closed-end mutual fund -- Capitec Grameen Bank Growth Fund -- of Tk 2 billion.
The approval came on Monday at a meeting held at the office of the Bangladesh Securities and Exchange Commission (BSEC), presided over by its Chairman Prof. Shibli Rubayat Ul Islam, according to a press release.
Of the total target size, the sponsor of the fund -Grameen Bank - has provided Tk 1 billion while the remaining Tk 1 billion will be collected from investors through an initial public offering (IPO).
The face value of each unit of the fund will be Tk 10.
Award winning Capitec Asset Management is acting as the asset manager while the state-run investment bank - Investment Corporation of Bangladesh is trustee and custodian of the mutual fund.
The objective of the fund is to provide lucrative dividends to unit holders by making money through capital gains and cash dividend from listed companies.
Presently, Capitec is managing three open-end mutual funds, two of which secured double-digit returns in FY22.
Capitec Asset Management won the prestigious 'Independence Golden Jubilee Award-2022' from the BSEC, securing the first position in the best asset manager category for its outstanding performance in the stock market.
A mutual fund is a professionally-managed investment scheme usually run by an asset management company that pools money from investors and invests in stocks, bonds and other assets. Depending on the profits earned, investors are then paid back in the form of dividends.
Currently, 36 mutual funds are listed on the Dhaka Stock Exchange while the number of open-end mutual funds is 89, including a new one approved on August 7 this year.
babulfexpress@gmail.com