BSEC okays replacing two funds’ asset manager

The Bangladesh Securities and Exchange Commission (BSEC) yesterday gave the go-ahead to change the asset manager of closed-end DBH First Mutual Fund and Green Delta Mutual Fund. 

Closed-end mutual funds are investment tools that pool a fixed amount of money for a certain period from investors and re-invest it into stocks, bonds and other assets.

The funds are traded on the stock exchanges and investors can buy or sell the shares in the secondary market.

The approval came at a meeting of the stock market regulator on its Agargaon office premises. IDLC Asset Management was sought as a replacement for LR Global Bangladesh by two-thirds of the unitholders of the funds.

In figures, some 73 percent of the DBH unitholders and 70 percent of the Green Delta unitholders called for the change. Bangladesh General Insurance Company, trustee of the funds, sought the BSEC’s views on it on October 31.

As per the BSEC mutual fund rules of 2001, any such replacement requires approval of two-thirds of a fund’s unitholders. LR Global Bangladesh had gone to court to stop the process. The Supreme Court cleared the way on December 8.