The capital market regulator has approved the application of the trustee to remove LR Global Bangladesh Asset Management Company as the asset manager of Green Delta Mutual Fund and DBH 1st Mutual Fund.
IDLC Asset Management Ltd has been appointed as the new asset manager for both funds.
After the 711th commission meeting on Sunday, headed by Chairman Dr M Khairul Hossain, the Bangladesh Securities and Exchange Commission (BSEC) said they had approved the asset manager replacement plan, based on the written opinion of over two-thirds of the unitholders and the application of the trustee.
Earlier on October 29 this year, investors holding 70.1 percent units of Green Delta Mutual Fund and 72.75 percent of DBH 1st Mutual Fund wrote to the Bangladesh General Insurance Company Ltd (BGIC), trustee of both the funds, to replace their asset managers.
Later on October 31, the trustee sought BSEC approval in this regard.
LR Global Bangladesh Asset Management Company tried to retain management of both funds, ensuing in a legal battle it lost. The Appellate Division recently cleared the way to replace asset manager of the two funds.
According to mutual fund rules set by the BSEC, if investors owning over two-thirds units of any mutual fund want to change their asset manager, the trustee will act accordingly, with permission from the securities regulator.
Investors of the both funds had recently been vocal against the decision of their asset manager to put their money into a less profitable media venture at an unusually high valuation.
They also questioned the transparency of the investment process, which is currently being probed for corruption.