The New Nation - Internet Edition

BUSINESS REPORTER

Aiming to meet the growing needs of Bangladeshi investors, Prime Finance First Mutual Fund is likely to offer a Tk 20 crore mutual fund to investors this year.

The fund designed to meet the growing needs of Bangladeshi investors was formed following a trust deed between the sponsors, Prime Finance and Trustee, Investment Corporation of Bangladesh (ICB) with the signing of trust deed recently.

Prime Finance, a leading Bangladeshi merchant bank, is sponsoring 20 per cent of the fund worth Tk 4 crore, while another 30 per cent worth Tk 6 crore will be raised through private placement.

The rest 50 per cent equivalent to Tk 10 cr will be raised from the general public through initial public offerings (IPOs).

ICB will act as trustee and custodian to the fund while ICB Asset Management Company Ltd will be responsible for managing the fund.

Announcing the launching of the fund, Managing Director of Prime Finance Md. Akter H Sannamat said: "Recent market situation has boosted investor demand for products which gravitate towards safer investment."

"Hence, it is timely for us to introduce this fund now to respond to market needs, as well as to provide more choices for investors," he said.

Sannamat said the main objective of the fund is to protect the capital of the investors by investing in high quality securities and generate capital appreciation by investing in equity and equity related instruments listed on the bourses.

He said the fund will be seven years closed ended mutual fund which has been registered by signing and registration of trust deed with ICB recently.

Sannamat said the ICB Asset Management Company Ltd will soon submit a prospectus with the capital market regulator - the Securities and Exchange Commission (SEC) - to invite public subscription with the consent of the regulatory body.

The Tk 20 crore shares have been divided into 2 crore shares valued at Tk 10 each. Every market lot will comprise of 500 shares which will be offered to the investors at face value.