State-owned Investment Corporation of Bangladesh (ICB) is set to launch two mutual funds of Tk10 billion, which would be the biggest ever mutual fund in the history of country’s capital market.
The mutual funds– ICB Multi-Sectoral Mutual Fund Scheme-1 and ICB NRB-Energy Sectoral Mutual Fund Scheme-1, would be of Tk5.0 billion each.
ICB Asset Management Company Ltd ( IAMCL), a subsidiary of the ICB, has been appointed as issue manager of both the two proposed funds, while state-owned Agrani Bank Ltd will act as the custodian and trustee of these two giant mutual funds.
IAMCL will apply to the Securities and Exchange Commission (SEC) shortly for approval, a top executive of the company told the FE.
“We are submitting the proposals for launching the two proposed mutual funds to the SEC by this month,” Chief Executive Officer (CEO) of IAMCL, Wahiduzzaman Khandoker, said.
He further said: “If approved by the SEC, the two funds will be the largest mutual funds in the history of the country’s capital market.”
According to the proposals, both the mutual funds will belong to specialized categories, Mr Wahiduzzaman added.
The proposed ICB NRB- Energy Mutual Fund will invest mainly in the energy sector — in pre-IPO (initial public offering), secondary and IPO placement market.
About the investment pattern of these two mutual funds, the IAMC CEO said, “At least 50 per cent fund of NRB-Energy Sectoral Mutual Fund will be invested in energy sector.
He said Multi Sectoral Mutual Fund is to be invested in different sectors having specific ratio.
Of the ICB Multi-Sectoral Index Fund, the sponsor — ICB — will hold 10 per cent of the fund, while 40 per cent fund will be subscribed by pre-ipo and the remaining 50 per cent will be Public offer.
The amount of ICB NRB Energy Mutual Fund Scheme-1 will be allocated like ICB Multi Sectoral Fund. Per unit price of both the mutual funds have 10-year maturity with the face value of Tk 10.
When asked, the AMCL CEO said these two mutual funds are expected to hit the market early next year.
At present, at least 20 mutual funds are awaiting SEC approval.
Currently, a total of 31 mutual funds are listed with the bourses. Their combined issued capital of the mutual funds is worth $299 million and their market capitalisation is more than three per cent or $520 million.
At present 13 mutual fund of ICB are listed in the premium bourses, Dhaka Stock Exchange. They are the prime sponsors of mutual fund in country’s capital market.
Source: The financial express, 7 December, 2010
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