The securities regulator has approved the prospectus of a new closed-end mutual fund named --- 'ICB AMCL CMSF Golden Jubilee Mutual Fund' worth Tk 1.0 billion.
The approval came on Tuesday at a meeting held at the office of Bangladesh Securities and Exchange Commission (BSEC) presided over by its Chairman Prof. Shibli Rubayat Ul Islam.
The total size of the ICB AMCL CMSF Golden Jubilee Fund is Tk 1.0 billion and face value per unit is Tk 10, according to a BSEC statement.
Capital Market Stabilisation Fund (CMSF), the sponsor of the closed-end fund, has provided Tk 500 million or 50 per cent of the fund size.
ICB Asset Management Company, the fund manager, has contributed Tk 200 million while Investment Corporation of Bangladesh (ICB) has provided Tk 50 million as pre-IPO placement.
The remaining Tk 250 million will be collected through initial public offering (IPO) from the investors.
Bangladesh General Insurance Company (BGIC) is working as the trustee and BRAC Bank is acting as the custodian of the fund.
Earlier on April 11 this year, a trust deed was signed between CMSE and ICB AMCL to launch the closed-end mutual fund.
Capital Market Stabilization Fund has taken the decision to launch Golden Jubilee Mutual Fund to create a positive impact and boost up the confidence of investors in the mutual fund sector, officials said.
At Tuesday's meeting, the stock market regulator also approved a draft prospectus of an open-end mutual fund---'EDGE Al-Amin Shariah Consumer Fund'.
The initial target of the fund is Tk 250 million. The sponsor of the fund, EDGE AMCL, will contribute 10 per cent (Tk 25 million) of the while the remaining 90 per cent or Tk 225 million will be collected from general investors through sales of its units.
The face value of each unit of the fund is Tk 10.
EDGE AMCL is working as the asset manager while Sandhani Life Insurance Company and BRAC Bank are working as trustee and custodian of the fund respectively.
Mutual funds pool money from investors to channel it into securities such as stocks, bonds, and other assets. Depending on the profits earned, investors are then paid their share as dividends.
Closed-end mutual funds are listed on the bourses. Currently, 36 closed-end mutual funds are listed with the Dhaka Stock Exchange.