The tenure of ICB AMCL 2nd Mutual Fund (closed-end) has been extended by 10 years.
Investment Corporation of Bangladesh, the Trustee of the scheme, has approved this time expansion.
Launched in 2009, the mutual fund was scheduled to be redeemed this month. After the latest tenure extension, it will expire on October 25, 2029.
In general, the tenure of closed-end mutual fund is 10 years. However, considering the bearish trend in the country's stock market, the Bangladesh Securities and Exchange Commission, the stock market regulator, has recently issued a notification for extending the tenure of closed-end funds by another 10 years.
The tenure of ICB AMCL 2nd Mutual Fund has been extended in line with this directive from the regulator, sources said.
An official at securities exchange commission said that the tenures of a big chunk of the closed-end mutual funds were scheduled to be redeemed this year. But if the tenures of a large number of funds come to an end at the same time, it might put negative impacts on the market.
''This is the reason why the regulator, after consulting the finance ministry, issued the notification for time expansion,'' he added.
The ICB AMCL 2nd NRB Mutual Fund is managed by ICB Asset Management Company, a subsidiary of state-run Investment Corporation of Bangladesh (ICB).
Golam Rabbani, acting chief executive officer at the ICB Asset Management told the Business Standard: ''We have extended the tenure of the ICB AMCL 2nd Mutual Fund taking into account the investors' interest.''
The ICB AMCL 2nd Mutual Fund has an asset of Tk73 crore with a paid-up capital of Tk50 crore.
In June 30, this year, the mutual fund provided a six percent cash dividend to its unit-holders. That time, it made a net profit of Tk3 crore while its Earnings Per Unit (EPU) was Tk 0.53.