The Capital Market Stabilization Fund (CMSF) has taken an initiative to form a Tk100 crore new closed-end mutual fund named “ICB AMCL CMSF Golden Jubilee Mutual Fund” in a bid to increase the fund flow in the capital market.
CMSF is the sponsor and ICB AMCL is the fund manager of the fund while Bangladesh General Insurance Company (BGIC) and Brac Bank will act as the trustee and the custodian of the fund, respectively.
To this end, CMSF signed a trust deed with BGIC on Monday in a ceremony at the headquarters of the Investment Corporation of Bangladesh (ICB) in the capital.
The number of units of the 10-year fund will be Taka 10 crore and each unit will carry the face value of Tk10.
The fund has been dedicated to the Father of the Nation Bangabandhu Sheikh Mujibur Rahman.
Sponsors say they have taken the move to form the fund to protect the interest of general investors and increase cash flow into the stock market. At least 50% of the profits derived from the fund will be distributed among the investors, they added.
Md Monowar Hossain, chief of operation of the Capital Market Stabilization Fund (CMSF), and ATM Ahmedur Rahman, chief executive officer (CEO) of ICB Asset Management Company Limited, jointly conducted the signing ceremony.
The CMSF will provide Tk50 crore which is 50% of the fund size.
Professor Dr Mohammad Tareq, chairman of the Golden Jubilee Mutual Fund Committee, stated that this fund will help stabilise the market by investing in potential shares.
Abul Hossain, managing director of ICB, expressed his optimism that there will be a 100% subscription to this fund.
He stated that if this fund becomes successful, it will reduce the uncertainty among the investors about closed-end mutual funds.
The fund will be successful and it will create positive vibration and boost the confidence of investors about mutual funds, he added.
Md Nojibur Rahman, chairman of CMSF, expressed hope and belief in the potential of the investor-friendly framework for the mutual fund.
He stated that BSEC and CMSF have made a good combination of the best organizations in the market to open the door of opportunities for investors.
This fund will protect the interest of small investors and will be a role model for the Mutual Funds, he added.
