Shanta Asset Management Limited (SAML) has taken an initiative to lunch a new mutual fund concentrating mainly on fixed income securities namely Shanta Fixed Income Fund (SFIF).
The company signed a trust deed with Bangladesh General Insurance Company Ltd's (BGIC) at the latter's head office on Thursday in this respect, reads a press release.
SAML is both the sponsor and the asset manager of the fund while BGIC will act as the trustee.
The trust deed signing ceremony was led by Mohammad Emran Hasan, CEO of SAML, and Ahmed Saifuddin Chowdhury, managing director and CEO of BGIC.
Sazzad Mahmud, head of accounts and operations, HM Jahid Hassan, CFA, fund manager and Aparajita Sarkar, deputy manager, marketing and sales from SAML, and Saifuddin Ahmed, general manager and company secretary, Debabrata Banik, senior deputy general manager (Structural Investment), Muhammad Irteda, assistant general manager (Structural Investment) e from BGIC, were also present at the signing ceremony.
The initial target of this fund will be Tk100 million and the sponsor will provide Tk10 million. As an open-end mutual fund, the fund size can be increased over the time. SFIF is mandated to maintain the investment in government securities within the range of 40.0% - 60.0% of its asset while the fund can invest maximum 50.0% of its assets in listed securities. Also, SFIF is allowed to allocate maximum 20.0% of its asset to non-listed securities holding "very strong" rating awarded by licensed credit rating agencies.
Mohammad Emran Hassan, CEO of Shanta Asset Management, said, "Focusing on investors' demand for the investment diversification tool, we are going to launch a mutual fund namely Shanta Fixed Income Fund, which will primarily focus on fixed income securities. This actively managed fixed income funds would offer our esteemed investors an opportunity to generate a steady return while reducing the investment risk considerably."
Under the law, the company will submit the trust deed to the Bangladesh Securities and Exchange Commission (BSEC). After the approval of the regulatory body, the fund will be launched as per the laws.