Unitholders apply to change LR Global as asset manager
A number of institutional investors have applied to Bangladesh General Insurance Company, the trustee of DBH First Mutual Fund and Green Delta Mutual Fund, to change the asset manager of the two funds.
LR Global Bangladesh is the asset manager of the two closed-end mutual funds.
Brac, Brac Bank, DBH Finance, United Commercial Bank, VIPB Asset Management, IDLC Investments, Delta Life Insurance, Edge Asset Management, Asian Tiger Capital Partners Asset Management, and some other investors wrote to the trustee to replace the fund manager by appointing IDLC Asset Management. They together hold 72.5 percent units of DBH First Mutual Fund.
Shahidul Islam, CEO of VIPB Asset Management, said he is not comfortable with the recent investment decision of the current asset manager.
Recently, LRG Bangladesh decided to invest a handsome amount in an online news portal from the funds’ money, he said.
“Moreover, IDLC Asset Management is a more professionally-managed firm, so, I want to replace the asset manager exercising securities rules.”
Brac Bank, NCC Bank, Eastern Bank, Agrani Equity, Delta Life, Green Delta Insurance, IDLC Investments, IDLC Asset Management, VIPB Asset Management, Edge Asset Management, Vanguard Asset Management, and some other investors, which are holding more than 70 percent units of Green Delta Mutual Fund, have also sought to change the asset manager.
Reaz Islam, CEO of LR Global Bangladesh, said LR Global Bangladesh has 10 years of sound track record in a flat market and cash dividend history of more than 40 percent.
“Our performance speaks for itself and we treat every investor equally.”
He said mutual funds are primarily for retail investors and anyone engaged in exploiting it for personal, short-term gains at the expense of retail investors will be dealt with under the law of Bangladesh.
Shahidul Islam said an asset manager is a management service provider to a fund and its owners have a legal right to change the service provider at any point of time for the betterment of the fund.
LR Global Bangladesh also manages four more funds.