Shanta Asset Management Limited (SAML) has taken an initiative to launch a new open-end mutual fund concentrating mainly on fixed income securities -- "Shanta Fixed Income Fund"-- in line with the progression and expansion strategy.
A trust deed signing ceremony was held at the head office of Bangladesh General Insurance Company Ltd (BGIC) on Thursday, according to a press release.
The Shanta Asset Management is both the sponsor and the asset manager of the Fund while BGIC will act as the trustee of the Fund.
The initial target of this fund will be Tk 100 million and the sponsor will provide Tk 10 million. As an open-end mutual fund, the fund size can be increased over the time.
"Focusing on investors' demand for the investment diversification tool, we are going to launch a mutual fund namely Shanta Fixed Income Fund which will primarily focus on fixed income securities," said Mohammad Emran Hassan, CEO of Shanta Asset Management Ltd at the event.
He noted that this actively managed fixed income funds would offer esteemed investors an opportunity to generate a steady return while reducing the investment risk considerably.
Shanta Fixed Income Fund (SFIF) is mandated to maintain the investment in government securities within the range of 40 per cent to 60 per cent of its asset while the fund can invest maximum 50 per cent of its assets in listed securities.
Also, Shanta Fixed Income Fund is allowed to allocate maximum 20 per cent of its asset to non-listed securities holding "very strong" rating awarded by licensed credit rating agencies.