Rejoinder, our reply
LR Global Bangladesh Asset Management Company sent a rejoinder to a report headlined "LR Global turns to Competition Commission to continue managing two mutual funds" published in the Daily Star on November 19, 2020.
Following is the full text of the rejoinder:
We strongly protest the article published by you dated 19.11.2020, which includes multiple factual errors and fabricated quotation only to spread misinformation orchestrated by colluding parties.
It is inaccurately stated in your news that the issue of removal has been resolved. LR Global Bangladesh Asset Management Company (LR Global) went to the Supreme Court of Bangladesh against the decision of illegal removal as Asset Manager from their two managed funds namely DBH 1st Mutual Fund and Green Delta Mutual Fund.
The Writ Petition filed by LR Global challenging the decision of their removal was never dismissed by the Supreme Court of Bangladesh rather is pending for final hearing before the Hon'ble High Court Division of Supreme Court of Bangladesh. As such, there is no scope to say that the issue of removal is resolved.
Over the last 24 months, we have observed the unusual trading activities in DBH First Mutual Fund, Green Delta Mutual Fund, MBL 1st Mutual Fund, LR Global Bangladesh Mutual Fund one and NCCBL Mutual Fund-1 managed by LR Global Bangladesh Asset Management Company Limited (LR Global).
Before going to Bangladesh Competition Commission, we notified the former BSEC Commission vide our series of letters dated 22.09.2019, 25.09.2019, 14.10.2019 and 08.09. 2020 including the details of our findings of the said unusual trading activities and market manipulations in the said funds. This manipulation issue is still pending and by no means settled or closed by any parties including BSEC. As such, there is no scope to say that the issue of removal is resolved by an unknown anonymous source.
We expect that you research facts, confirm sources, verify the information before you publish any market sensitive news. It is true that all investors have the legal right to sell closed End Fund shares and exist at anytime. However, there is no law or rule anywhere in the world that automatically allow a well-performing fund manager with over 10 years of a strong track record to be removed by inferior and substandard competitors who engaged in price manipulation and collusion.
In your article, you also failed to mention that the same parties colluded against another well-performing fund manager in the year 2016. These parties first accumulated a large number of shares via market manipulation to take illegal controlling interest for personal gains.
By publishing inaccurate information, your publication is engaging in slander and allowing premeditated conspirators to harm the reputation of Bangladesh Securities and Exchange Commission (BSEC), LR Global and also adversely impacting the mutual fund industry.
Our Reply:
In the report, we mistakenly mentioned that the Supreme Court dismissed the High Court order that had stayed the Bangladesh Securities and Exchange Commission's approval to change LR Global Bangladesh Asset Management Company as the manager of two mutual funds. In fact, the Appellate Division of the Supreme Court has upheld its Chamber Judge's decision that stayed the HC order. The hearing on the writ petition continues. We regret the error and stand corrected.
The rest of the report is based on official documents and named quotes. We also included the quote of an unnamed official of the BSEC as he is not authorised to speak to the media. We stand by the report.
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