The New Nation - Internet Edition

BUSINESS REPORT

The Aims of Bangladesh Limited, an asset management company, is preparing to float a provident mutual fund, a new product at the country's capital market.

'We are preparing to bring in a provident mutual fund as the SEC recently through an amendment to its mutual fund rules allowed trust fund, and registered provident and pension funds to float mutual funds,' said Yawer Sayeed, managing director and chief executive officer of the Aims of Bangladesh.

He said the proposed mutual fund would be the BRAC provident mutual fund. BRAC is one of the leading non-governmental organisations in the country.

The SEC amendments broadened the scope of floating mutual funds, which are useful instruments of institutionalising the retail investors, he said.

Bringing more mutual funds at the market will widen the doors for retail investors to put money on stocks under the institutional frame, he added.

A senior official of the SEC said Thursday that the revised rules came into effect recently after gazette notification.

Sayeed said, 'Asset management companies play a significant role in developing the stock market, bringing mutual funds and providing other capital market related services.' 'Entering three more asset management company in the country's market this year is a good sign for the market,' he said.

The Aims of Bangladesh, which was registered in December 1998, is a sole private asset management company.

Privately-owned the Venture Investment Partners Bangladesh Ltd, LR Global Bangladesh Asset Management Company Ltd, and RAC Management Company Private Limited, and state-owned ICB Asset Management Company Ltd are the four other asset managers in the country.

The Venture Investment Partners Bangladesh got SEC approval on April 1 this year, while LR Global Bangladesh Asset Management Company got the approval on June 3 and RAC Management Company Private on September 16.

'We will bring two more mutual funds - BGIC Mutual Fund and IDLC Mutual Fund next year,' said Sayeed adding that 'The Aims of Bangladesh is also working to bring a mutual fund for the non-resident Bangladeshis.'

Currently, the Aims of Bangladesh manages the Aims First Guaranteed Mutual Fund, floated in 2000, and the Grameen Mutual Fund One, floated in 2005, and the Grameen Mutual Fund Two, floated in 2008.

The three closed-end mutual funds are listed with the Dhaka Stock Exchange and the Chittagong Stock Exchange.

The Aims of Bangladesh CEO said, 'Currently, we manage assets worth Tk 250 crore.'

The company also provide other capital market-related services including corporate advocacy, he added.